The European Commission has urged EU member states to reduce the growth of public budget deficits in 2024 and indicated that current budget concessions would be rolled back by the end of 2023. The remarks were attributed to Valdis Dombrovskis, a vice president of the European Commission, in reports cited by the Italian news agency. The exchange came during a briefing that followed the EC’s presentation of its fiscal policy outlook for 2024, where the commission highlighted a persistent inflationary trend across the euro area, including measures tied to the core rate.
During the press conference, the EC representative underscored that the problem remains unresolved and poses a risk to household purchasing power and social fairness across member states. He stressed that debt prudence must continue to play a pivotal role in shaping economic policy, while also pointing to a pool of unused resources within the investment market. These resources could potentially support businesses that are navigating debt pressures, helping to sustain investment and job growth during a period of economic adjustment.
The discussion also touched on the public policy tools available to shield households from mounting price pressures on essential goods. In this context, authorities in charge of fiscal oversight emphasized the need for careful budgeting and targeted interventions that balance inflation containment with the goal of maintaining social protection. The broader aim is to foster a stable economic environment in which firms can plan long term and households can preserve purchasing power even as costs rise.
In related measures, authorities have signaled continued vigilance over price dynamics in essential sectors and the potential for strategic fiscal responses designed to mitigate food price volatility. These steps form part of a wider framework intended to preserve affordability for consumers while supporting resilient, investment-driven growth across the union.