Eurogroup: Consultations on changes in economic governance in the Eurozone begin

The Eurogroup is currently consulting on changes in economic governance in the Eurozone. Difference of views between the countries of the North and the South.

With the formal presentation by the European Commission of a general framework on its intentions for changes in economic governance in the Eurozone, the Eurogroup in Brussels begins today, and one of the most difficult discussions in recent years at Community level will continue in the coming months.

Two groups of countries, one from the north and the other from the south, appear to have differing views on how fiscal surveillance rules should be formulated after the pandemic. The northern countries of the Eurozone, without ignoring the special treaty created by the pandemic with the large increase in the public debt, want the strict rules of control of the public deficits to remain without significant changes, while they seem to accept changes in the way of dealing with it. public debt.

Southern countries are demanding more flexibility

On the contrary, the countries of the South, such as Italy, Spain, Portugal, Greece, but also France, call for an in-depth review of the rules to be more flexible, in order to be able to support the development in the coming years, which consider a one-way street to reduce public debt, which has reached record levels due to the pandemic.

Today’s debate, which will continue in the coming months, will allow the Commission to formulate the final proposal on the basis of which will be negotiated throughout the next year. rising inflation, but also energy prices.

Nikos Bellos, Brussels

Source: Deutsche Welle