After three months of intense negotiations, the compromise proposal to reform fiscal rules presented by the Spanish EU presidency is starting to find its way among the Twenty-Seven Countries. Document sent by the vice president’s team Nadia Calvino According to the figure determined by the French finance minister, “90%” covers Paris and Berlin Bruno Le MaireAlthough Germany and Germany are the most frugal countries Christian Lindner They initially insist that “key” issues remain to be resolved, predicting talks will continue through Thursday night and Friday.
“I hope the meeting will be productive, we warned the ministers that the night will be long and our goal is to reach a political agreement at this Ecofin meeting (on Friday),” Calviño said upon his arrival at the meeting. Eurogroup meeting This will be followed by a working lunch “without closing time”. “We will take the time necessary to reach an agreement,” he added of the deal, which is being finalized after months of complex negotiations. “We know that there are still differences between Member States, but these differences can be bridged if the approach is constructive. “It is possible to conclude these discussions today or tomorrow,” the vice chairman of the commission said hopefully. Valdis Dombrovskis.
Although the majority of ministers agreed on the urgency of finalizing the new rules, the Italian commissioner Paolo GentiloniHe predicted this Thursday that his chances of success were only “51%.” “We need more ambition to combat excessive deficits. I’m not that optimistic because there are clear political and technical problems. The devil is in the details, and so should we.” “We are very firm in the decisions we make,” the Finnish woman also warned Riikka PurraHe advocates rules that are “strict enough but workable”.
According to Calviño, criticism comes from the frugal segment. Germany It is one of the countries that advocate more flexibility, especially Turkey. France And ItalyStating that they were on the right track, he said, “The offer of the Spanish presidency was found appropriate.” good balancewith a single monitoring indicator such as the spending path and rules that are “easier to implement, more realistic, adapted to the economic reality we live in after the pandemic and guaranteeing sustainability in line with the investments we need to support in the coming years,” he said.
debt deduction
This balance hinges on much of the numerical demands Berlin has put on the table to ensure countries meet and reduce their rates. budget deficit and debt:A Average annual minimum debt deduction of 1% For countries like SpainThose with a debt ratio of more than 90% of GDP (0.5% for countries between 60% and 90%); commitment to establish an organization financial cushion (based on necessity A deficit of only 1.5% of GDP to guarantee a budget margin in case of “shocks” even for countries with imbalances below 3%, and Minimum annual adjustment of 0.5% of GDP For countries whose public deficit exceeds the 3% ceiling and are subject to the excessive deficit procedure.
“Germany comes to Brussels today knowing that it is possible to reach an agreement and that we are willing to reach an agreement. We have talked very intensively in recent days and weeks, especially with our French friends and partners. We have taken very big steps, we can say Germany and France “They now agree 90% of the time on important issues,” German said. Lindner for whom “there are still unanswered questions.” Obstacles to be solved include, for example, the effort required. Countries with excessive deficit procedure.
France wants more flexibility
French Le Maire put a new red line on the table at the last minute. France made a request two tenths additional flexibility For countries with excessive open files. “We agreed to continue the excessive deficit procedure, a safeguard clause with a debt reduction of 1 percentage point per year and a safeguard clause for a deficit of 1.5 percent,” Le Maire said this Thursday regarding all concessions. Berlin.
I believe that France has made all the necessary moves to reach an agreement. It is proof that we want serious and convincing rules. “But there is a red line that France will not cross,” he warned and asked Member States to demand flexibility on this issue. more limited settings When they are under sanctions procedure -predictably Ten countries in 2024– To be able to continue to invest and reform European priorities. “This is a completely reasonable and responsible request. We do not want the ability to make Europe prosperous to be limited to 4 years. “This would be counterproductive and an economic and political mistake,” he warned, insisting that the EU must continue its incentive to invest so that Europe does not fall behind in the innovation race against the United States.
Calviño to the EIB?
It’s not just an agreement on fiscal rules that’s expected at Ecofin’s meeting this Friday. It is also expected to end the renewal of the presidency of the European Investment Bank, for which Calviño is fighting for the position. Diplomatic sources assume that the Spanish vice president is the only candidate with sufficient support and that this will be announced this Friday at a working breakfast to be held by the Belgian finance minister Vincent van Peteghem, who chairs the board. EIB.
This Thursday the Eurogroup approved recommendations country by country. 2024 budget plans. Like Brussels, Eurozone ministers urge Spain to send money new accounts as soon as possible In the statement, it was stated that member states that still maintain “significant” energy support measures were called on to eliminate them and recommended a “prudent” fiscal policy. Gradually as soon as possible in 2024 and using the money to reduce public deficits.