In one way or another new tax rules Timely, Budgets approved by Member States for 2024 should include adjustments in their spending. This was implied by the European Commission’s economic vice president. Valdis DombrovskisAfter the meeting where 27 of the European Union Ministers of Economy and Finance (Ecofin) were given one month to resolve their disagreements, tax rule reform before their next meeting on March 14.
This European Commission It recognizes that the timetable for approving the Stability and Growth Pact (SGP) reform is “too tight” and it is possible that not every Member State arrives in time so that the 2024 Budget can already be prepared. within the framework of new rules that make it possible to flexibly direct public finances towards their goals. open (3% of GDP) and debt (60% of GDP). “In any case, the European Commission budget guidelines We plan to do so by 2024 and in March,” said the Commissioner. more cautiousgiven inflation Dombrovskis also reminded that the “escape clause” adopted after the outbreak of the pandemic in 2020, allowing countries to prepare their own decisions, will no longer exist in 2024. accounts without the yoke of the sanctions regime Stability and Growth Agreement (PEC).
“Lots of work to do”
On the table is the proposal that the European Commission launched in November to give countries more flexibility, such as: Italy, Greece, Spain or France on the way to reducing public debt, but with a sanctions regime that will be less but more automatic than existing sanctions.
Both Dombrovskis and the Swedish Finance Minister, Elisabeth Svantesson stressed that Member States showed “great consensus on a set of key principles and objectives” this Tuesday for the design of the European Union’s new fiscal rules. However, they added, “we will need to continue to work on it more” as there are a number of “technical details” that need to be agreed upon. “We will need to agree on a number of important issues to achieve maximum consensus at next month’s Council meeting,” the vice-president said. “Many stated that defragmentation was necessary. budget arrangement Svantesson, who wanted to express his “satisfaction” with the progress made in the debate, said, “There is still a lot of work to be done to reach a new framework for the EU that we are happy with, but today’s discussion is moving towards convergence”.
Differences between countries
“The European Commission will continue to support the discussions in the coming weeks and this will allow us to present some legislative proposals for the European Union. March Council of Europe“, adding Dombrovskis to indicate the interim goals of the reform. Spain’s vice president of economics, Nadia Kalvino, He urged the Community Executive on Monday to submit this legislative project “as soon as possible” so that the negotiations proceed “as far as possible”.
The debate among member states is between those who want more flexibility to reduce public debt (in order not to stifle growth and continue to make progress in the investments necessary for the double green and digital transition) and those who prioritize budgetary stability. “It’s no secret that the Member States have different views and starting points, but we don’t shy away from complex discussions,” the Swedish Finance Minister said. Elisabeth SvantessonThe country that holds the term presidency of the EU is leading the negotiations this term.
“The commission’s proposal is like entering an unknown continent, no one knows exactly what it means,” the German Finance Minister said when he arrived at the meeting. Christian Lindner. The German minister clarified his position: “We are at the beginning of the exchange of views on the economic governance of the EU. Obviously, the situation has changed. After the pandemic and this energy war in Russia we have to deal with higher debt ratios and therefore we need to reframe the Stability and Growth Pact. For Germany It is essential that we return to healthy and sustainable public finance as soon as possible. We need a reliable and reliable way to reduce deficit and debt ratios in the EU. We are aware of the private and public investment needs of Member States for the ecological transition, but this is no excuse to avoid structural reforms in our economies. So we’re open to more flexibility in the medium term, but we need a credible way of debt and deficit reduction.”
Minister of Finance of France, Bruno Le Maireexpressed its desire to reach the definition of new rules in the coming months: “France supports the return of all countries in the Eurozone to healthy public finances and the need to invest in a decarbonised industry and the fight against climate change. To be found with effective, appropriate rules that reach consensus among all Member States. What is needed is balance”. Le Maire underlined France’s commitment to budget stability: “The president has a commitment. Emmanuel Macron, who will reduce the deficit to less than 3% of GDP by 2027 and reduce the debt level by 2026, and we keep our promises. We started a spending review. We all believe it is necessary to return to sustainable public finances when investing in green investments.”