EU Commissioner for Economic Affairs Paolo Gentiloni wants the EU’s debt limits to be set on a country-by-country basis as part of a proposed reform of the EU Stability Pact, which he intends to present in mid-2022, he told the German newspaper Frankfurter Zeitung, according to Reuters.
Gentiloni called for a debate in November on EU debt reform amid economic pressures from the coronavirus pandemic.
“We can not put all countries in the same ‘basket.’ The differences in (current) debt rates are too great for that,” Gentiloni told the newspaper on Wednesday.
Government support and investment programs to address the economic impact of the pandemic have pushed debt levels in many EU countries beyond the 60% of GDP threshold set by the Stability Pact.
Gentiloni said the reform would set separate debt targets for each country, adding that the Commission should take more effective measures to enforce fiscal rules.
He also rejected a proposal by Klaus Regling, head of the eurozone bailout fund, to increase the debt limit to 100% of GDP for all countries.
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Source From: Capital
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