EU economy and finance ministers agreed on Wednesday to reform EU debt rules. In the future, individual states must present plans on how they want to reduce debt. The measures must provide room for maneuver, but also guarantee safety.
The Council had “agreed on a new framework for economic governance that guarantees both stability and growth, with balanced, realistic rules fit for current and future challenges,” the Spanish presidency said.
Brunner for “strict rules”
Finance Minister Magnus Brunner (ÖVP) called for “strict, enforceable and clearly defined debt rules”. His German counterpart Christian Lindner and several other EU ministers were also skeptical about a more flexible interpretation of the EU Stability Pact as demanded by France.
“More realistic and effective”
“The new budgetary rules for the EU member states are at the same time more realistic and effective. They combine clear figures on lower deficits and falling debt ratios with incentives for investment and structural reforms. The stability policy has been strengthened,” said German Finance Minister Christian Lindner, welcoming the agreement on
According to the proposals discussed, EU countries should present national plans with measures to reduce debt in the future. This would give Member States more room and time to consolidate their budgets. The Maastricht upper limits of a maximum of three percent budget deficit and 60 percent total debt remain unchanged. Safety lines demanded by Austria and Germany, i.e. quantitative targets, are intended to ensure sufficient debt reduction.
The rules were temporarily relaxed
EU regulations on debt reduction had been temporarily relaxed in recent years due to the consequences of the corona pandemic and the war in Ukraine. After the ministers, it is now the European Parliament’s turn.
Source: Krone
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