Berlin promises to look into the proposal of the new European fiscal rules. The initiative unveiled this week by the European Commission was not at all to the liking of the country, which defends a strong hand in reducing debt and government deficits and questions the approach that it is states themselves that negotiate their adjustment plans with Brussels. The introduction of a mandatory minimum reduction of 0.5% in the Brussels proposal has also not fully convinced the federal government. Finance Minister Christian Lindner assured this Friday that this rate is “just a safeguard”, insisting that “the most important thing is that government spending does not grow above GDP”. Berlin’s position is well known in the EU. That same week, Lindner published a harsh article in the ‘Financial Times’ criticizing Brussels’ attempts to ‘dilute’ fiscal policy and that debt reduction is becoming merely a ‘political negotiation’ with member states. For his part, the Commissioner for Economy, Paolo Gentiloni, urged countries to take a constructive stance. Entering the informal meeting of the Eurogroup in Stockholm, he assured that the Commission “is strongly convinced that its proposal is very balanced”. “We know it’s not easy, but it’s necessary and we have a basis to build consensus,” he assured. Despite Germany’s reservations, the Community Executive hopes to approve this legislative proposal by the end of this year, so that it will enter into force in 2025. The bulk of these negotiations will take place during Spain’s presidency of the EU and the Prime Minister and Economy Minister, Nadia Calviño, has pledged to “do everything possible” to move forward in this process. The German opinion is known. It’s a complicated issue and it shouldn’t surprise anyone that there are differences,” he stressed.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
