The European Commission is committed to maintaining the escape clause next year and deactivating it in 2024
The economic shock of the war in Ukraine, the second the European Union has experienced in two years, has prompted the European Commission to review its budget plans. Brussels is committed to maintaining the break-out clause – which allows member states to exceed debt and deficit limits – next year. However, the measure, included in the package of measures for the European Semester, is not an open bar and has warned seven countries, including Spain, of the imbalances in their public accounts.
Germany, France, the Netherlands, Portugal, Romania and Sweden have also received a wake-up call from the Community Executive, but the biggest blow to the wrist were Italy, Greece and Cyprus, which are registering “excessive imbalances” in government debt and deficits . As Economics Commissioner Paolo Gentiloni points out: “European fiscal policy must leave room for investment in the green and digital transitions.”
The EU also wants to give European countries a bigger belt for aid to Ukrainian refugees and reduce dependence on Moscow. Moreover, high inflation and the skyrocketing energy price are already two of the factors of most concern to Brussels. However, Geniloni has pointed to the “strong momentum” of the European economy before the Russian aggression and is confident that a “more resilient, greener and digital” Europe is the key to continuing to grow in the future.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
