“We reached 100% agreement this afternoon” Christian Lindner about the new rules Stability and Growth Pact: Excellent news for Europe, which will ensure healthy public finances and investment in the future. Ecofin, tomorrow!”
With this message, the French Minister of Economy said, Bruno Le MaireOn Tuesday night (after 10 p.m.), he announced that he had reached an agreement with his German counterpart Christian Lindner on reforming the European Union’s fiscal rules after they both met at the Ministry of Economy in Paris.
The agreement could be approved this Wednesday by the EU’s 27 member states at an extraordinary meeting of European Finance Ministers (Ecofin). Spanish presidency EU Trying to implement the reform of fiscal rules before the end of the year. Differences in criteria between France and Germany were where the Spanish Presidency fell short of achieving its goal.
“I had a productive conversation with my friend Bruno Le Maire in Paris. We agree on the key elements of tax rules: Measures to reduce deficits and debt levels, incentives for reforms and investments. This is an opportunity to reach a political agreement on the Ecofin of tomorrow. CL,” the German Finance Minister also stated on the social network
Optimism was already felt before the meeting at the French Ministry of Economy started. “I am very happy to announce that we are very close to a 100 percent agreement between France and Germany,” he said. Le Maire Speaking at a joint press conference with Lindner, the Frenchman even promised that they would achieve this this Tuesday night, only to announce it four hours later.
The Spanish Government, which took over the rotating presidency of the European Council in June, has set one of its goals as reaching an agreement on this EU tax reform before the end of the year. And now he is very close to achieving this. In recent weeks the bloc’s states, especially France, Germany, Spain and Italy— Although they agreed on the basic pillars of reform, they increased contacts to reach “consensus.” In effect, this would preserve the controversial rule. maximum 3% public deficit And Debt of 60% of GDP. Will definitely be disabled next year escape clause The Bank has suspended the deficit and debt limit application since March 2020, when the Covid-19 epidemic began.
Diplomatic sources also expressed Spain’s optimism about the imminence of a possible deal at Ecofin on Tuesday morning. While we wait to learn the details of the agreement between Le Maire and Lindner to unblock a deal that took much longer than the Spanish Presidency wanted, the question of how quickly it becomes clear remains to be answered on Tuesday afternoon. budget deficit to reach target of 1.5% of GDP allowing states to have a bed responding to moments of budget difficulty without infringing Limit of 3% of GDP. France and Germany also needed to close gaps related to possible deviations from the annual spending path. Silvia Martínez reports from Brussels.
“Technical issues we need to explain”
France and Germany disagreed on how to harmonize financial stability to sustain investment in countries that do not comply with deficit and debt limits. These negotiations on EU tax reform have been marked by classic differences between them. in Paris and Berlin, This shows the distinction between some Nordic countries those of the continent are simpler, and those in the south (especially Spain, Portugal and to a lesser extent France) giving priority to maintaining the level of public expenditures in the face of economic slowdown.
Before their meeting in Paris, Le Maire emphasized that the Italian Finance Minister said: Giancarlo Giorgetti, He was aware of the progress in talks between France and Germany and emphasized that they were “aligned” with Italy. Le Maire also emphasized the importance of Spanish Vice President Nadia Calviño’s work to achieve consensus within Ecofin.
“There technical problems Speaking to the press at a joint press conference with Le Maire before the meeting in Bercy, the headquarters of the French Ministry of Economy, the German minister said, “We still need to clarify and agree on some figures.” Lindner However, he expressed confidence that they would reach a political agreement: “I am very optimistic”. “Germany will not accept rules that are not strict,” added this liberal leader, whose coalition government (consisting of social democrats, greens and liberals) is currently experiencing a budget crisis. climate change. how to give up subsidize the purchase electric cars.
Le Maire emphasized that the EU’s fiscal reform “will allow the euro to have, for the first time since its creation, a real stability and growth pact, not just a stability pact.” Although this measure will not change the deficit and debt ceilings, it is intended to facilitate their implementation. In recent decades, many EU countries, including France and Germany, have had great difficulty complying with these rules.