Brussels prepares to reapply fiscal rules and asks states for plans to reduce their debt
The European Commission has asked the EU states to draw up plans to reduce their debt and public deficits by 2026. According to the latest Commission forecasts, 16 states will have a deficit of more than 3% in 2023, including, Spain (4.3%).
-
listen to the page
listen to the page -
Euskaraz irakurri
Euskaraz irakurri: Arau fiskalak berriz aplikatzeko prestatzen ari da Brusela, eta zorra murrizteko planak eskatu dizkie statuei
The European Commission prepares to reapply in 2024 European fiscal discipline rules after almost four years suspended due to the pandemic and the war in Ukraineso this Wednesday it has asked the states of the European Union to draw up plans to reduce their debt and public deficit by 2026.
Although the Twenty-seven are still negotiating the design of the future Stability and Growth PactBrussels believes that the improvement in the economic situation justifies returning next year, as planned, to the limits of 3% of GDP for the public deficit and 60% in the case of debt.
With an eye on this scenario, the Community Executive has given guidelines to governments to prepare their Stability Plans for the next four years already taking into account some of the elements of the future reform, which might not yet be in force in 2024.
“Member States with substantial or moderate debt are invited to establish fiscal objectives that guarantee a plausible and continuous debt reduction or that keep it at prudent levels in the medium term,” says the text presented by the economic vice president of the Community Executive, Valdis Dombrovskisand the Commissioner for the Economy, Paolo Gentiloni.
Opening of files for excessive deficit
The Community Executive plans to resume the opening of files for excessive deficit in the spring of next year for all those Member States with a public deficit and debt above the limits, which even with the reform will remain at 3% and 60% of GDP, respectively.
According to the latest Commission forecasts, 16 states will have a deficit of more than 3% in 2023, including all the large euro economies: Spain (4.3%), Germany (3.1%), France (5.3%), Italy (3.6%) and the Netherlands (4%).
The Ministers of Economy and Finance will debate the reform on next Tuesday to seek a consensus that will allow the Commission to make a formal proposal at the end of March or beginning of April.
Source: Eitb
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
