The European Commission formally restarts the public debate on its reform Stability and Growth Pact, which limits public deficits to 3% and debt to 60% of GDP, recording the developments after the COVID-19 crisis.
The public debate on the revision of the framework of economic governance in European Union had first started the February of 2020, before the COVID-19 pandemic. This debate was interrupted in order for Member States to focus on addressing the economic and social impact of the pandemic, which led to the suspension of fiscal rules of the Stability Pact, until December 2022, broadcasts the RES EIA.
Presenting the relevant document today for the resumption of the consultation on financial rules, the Vice-President of the Commission Valdis Dobrovskis expressed the view that Europe is now sailing in calmer waters after the pandemic turmoil and growth expectations have been met.
He stressed, however, that the crisis has made some challenges more visible, such as higher deficits and higher debt, widening disparities and inequalities and the greater need for investment.
«We need rules of economic governance that can meet these challenges head-on“, Said V. Dobrovskis, pointing out that a public debate is needed, to hear the views and ideas in order to have a consensus on any decisions.
The Commissioner of Economy was placed on the same wavelength Paolo Gentiloni. He said that after last year’s unprecedented shock, Europe’s economy was recovering rapidly, stressing that “now we have to ensure that our future growth is sustainable”.
He stressed that the review of economic governance begins against the background of huge investment needs, as the climate emergency it gets more intense with each passing year.
However, the Economic Commissioner said that the strong budget support provided during the pandemic has led to high debt levels and this makes it even more important to have an effective fiscal framework. “It is vital for the future of the Union,” he said.
Consultation by 31 December, aiming for a broad consensus before 2023
It is pointed out that the public consultation is addressed to EU institutions, at national governments and parliaments, at central banks, in ΕΚΤ and in academic world and will remain open until December 31.
Until then, public authorities and all stakeholders are invited to submit their proposals.
The Commission will evaluate the proposals and consider all the views expressed during the consultation and will present its guidelines and guidelines for changes in fiscal governance, the first quarter of 2022. The aim is to reach a broad consensus, in a timely manner, before from 2023, according to the RES EIA.
What the Commission is emphasizing at the moment is that since its inception, the EU’s economic governance framework has led the Member States to achieve their economic and fiscal policy objectives, to coordinate their economic policies, to address macroeconomic imbalances. and ensure sound public finances. However, the Commission acknowledges that somevulnerabilitiesWhich the financial framework has not dealt with effectively. In addition, it is noted that “the economic context has changed significantly since the rules were first introduced.”
According to the Commission, the public debate on the revision of the economic governance framework should take into account and address the issues identified in February 2020. In addition, it should reflect the new challenges identified by the COVID crisis; 19. It could also learn useful lessons from successfully tackling EU pandemic policy, in particular its governance. recovery and resilience mechanism (RRF).
Finally, the Commission emphasizes that “a broad and inclusive commitment with all stakeholders is vital to building a broad consensus on the way forward for the EU economic governance framework”.
The Commission therefore invites stakeholders to participate in the debate and to express their views on how the economic governance framework has worked so far and on possible solutions to enhance its effectiveness.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
