European Union ministers responsible for the economy and finance, known as Ecofin, reached the final decision meeting without a settled agreement on fresh fiscal rules aimed at limiting budget deficits and debt. They will keep in touch tomorrow, noting some progress, yet there is no clear sign of a final deal being sealed at this stage.
Several sources consulted by EFE indicate that the negotiations, which lasted almost eight hours into the night, showed meaningful progress and that the Twenty-Sevens are closer to an agreement. Still, participants stressed that further work remains to close the file. Other observers added that consultations are needed—both political and legal—and the Spanish presidency would review next steps tomorrow. An extraordinary meeting before year-end cannot be ruled out if progress continues to stall on key points. The aim remains to reach an agreement.
Diplomatic sources emphasize that the negotiations are complex, yet there is clear will to sign an accord. They note, “We have gone as far as we can today. Work will continue in the coming days.” The main elements of an agreement are sketched out, but the final text and its legal calibration require careful finishing touches.
Persistent differences among member states compelled the talks to end, despite expectations that the discussions would be intricate from the morning. The original plan called for extended hours, potentially all night, in pursuit of a consensus.
The purpose of the meeting was to untangle the Stability Pact reform. It began around 7:30 p.m. on Thursday, with several rounds of discussions among the Twenty-Sevens and periodic pauses that allowed bilateral and group-level talks. Throughout this process, the Spanish delegation, led by the country’s vice president, Nadia Calviño, has been updating the compromise text proposed earlier in the day to bring the capitals closer together.
The most significant sticking point centers on Germany and France, especially the pace at which deficit reduction must be pursued for countries facing a gap between spending and revenue exceeding 3% of GDP. Paris and Berlin agree that such partners should adjust the structural deficit to about 0.5% of GDP. The divergence lies in France wanting additional flexibility that could allow the effort to fall to 0.3% if the country commits to a series of investments and reforms, a condition Germany has rejected.
Separately, the Spanish document includes Berlin’s request to set a requirement for an annual debt reduction of at least 1% for the most indebted members and to aim for a deficit reduction target of 1.5% of GDP, even when the excess over 3% is below that threshold set by the treaties. Italy, meanwhile, maintains that this adjustment should be measured using the primary structural deficit, which excludes interest payments on debt, and it seeks special treatment for defense investments within the new budget framework. It also calls for extensions to the agreed adaptation period under national recovery plans.