European Economic Commissioner Paolo Gentiloni left open the possibility that the Commission would create permanent fiscal tools after the expiry of the Recovery and Resilience Mechanism.
“The successful implementation of the Recovery and Resilience Mechanism is of vital importance for the restart of the European economy and for any future discussion regarding the creation of permanent fiscal instruments”, answers the European Commissioner for the Economy Paolo Gentiloni to a question from the Vice-President of the EP Dimitris Papadimoulis, about the future EU policies.
“The Commission agrees”, the Commissioner added, “that central fiscal competence is absent from the architecture of the Economic and Monetary Union” and referred to the proposal submitted by the Commission in 2017, “as part of a package of measures to complete the Economic and Monetary Union of Europe, for a European Investment Stabilization Facility (ESIF), which was intended to support euro area members in the event of large asymmetric shocks”.
Mr. Papadimoulis asked the Commission whether it is working on the possibility of creating permanent fiscal mechanisms that would have the possibility of stabilizing intervention in the member states facing asymmetric external shocks, which have increased significantly, both due to the war in Ukraine and the pandemic, as well as due to the climate and energy crisis.
Source: RES-MPE
Source: Capital
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