With different tones of voice but with the same intention. President of the Euro Group, Pascal Donohoe European Economic Commissioner, Paolo Gentiloni, and the president of the ECB, Christine Lagarde, This Friday, they reminded euro zone member states to prepare strict and restrictive budgets for 2024 before submitting their respective proposals for review by the European Commission within a month. before 15th of October.
The Eurogroup chief said the 2024 accounts should be “cautious, restrictive and consistent with changes to monetary policy” to keep inflation under control. Pascal Donohoe At the press conference held in Santiago de Compostela Informal meeting of finance ministers The Spanish Presidency of the EU met in the capital of Galicia.
Despite the difficulties in forming a government and the uncertain process of appointing a president by the Congress of Representatives in the coming weeks, Spain will also need to present a plan in Brussels before October 15 (whether the government is in office or not). budget This will certainly involve expansion of existing Government accounts. The European Commission will monitor whether this plan complies with the austerity guidelines initiated from Brussels.
fiscal policy
One day after the tenth interest rate increase European Central Bank Commissioner in the last 14 months gentiloni “To support the ECB’s efforts to control inflation, “Fiscal policy should be restrictive” and contribute to the reduction debt and deficit people. “This does not mean less investment, but it does mean less energy aid and the focus of measures on the most vulnerable groups,” the Italian commissioner said in a new call for member states to eliminate without delay the subsidies that governments must compensate for. First of all, the effects of the epidemic and the energy crisis, after that.
Gentiloni praised Spain’s effort to reach a “good agreement” on new fiscal rules before the end of the year. Although no new text has been presented Santiago de Compostela, No decision on this issue is expected to be taken at Ecofin’s informal meeting this Saturday; Gentiloni hopes to achieve “some progress” that will allow further progress to be made.
Vice president Nadia Calviño expressed intention to move forward ““An ambitious programme.” Before the end of the year, under the Spanish Presidency of the EU, the aim is to reach an agreement to have, as soon as possible, a new framework of fiscal rules with “stable and gradual paths” to reduce public debt, while also allowing further investments in the European agenda. give green and digital.
The Spanish Presidency plans to present the first agreement proposal at the next official meeting of Finance Ministers In Luxembourg on 17 October.
Interest rates
“Budget policy should be somewhat restrictive and Reduce debt and deficit. What Europe needs is more public and private investment in the green and digital transition,” ECB President Christine Lagarde added.
Lagarde had the opportunity to defend the ECB’s new interest rate increase decision taken the day before in front of euro finance ministers. “I think it’s very well understood. question or no question In accordance with our decision,” the ECB president said at a press conference following the Eurogroup meeting.
Lagarde explained once again after placing this. official price of money At 4.5 percent, “interest rates have reached levels that, if maintained for a sufficient period of time, will contribute to inflation returning to the 2 percent target.” This is “today’s vision”. If inflation data deteriorates, the ECB will readjust how long interest rates will be at the appropriate level. That’s why Lagarde refuses to answer the question of whether interest rates have already fallen. reached the top. “I assure you we will get inflation under control,” he said.