Ministry of Finance of Spain: The fiscal rules do not meet the needs of today’s Europe

The fiscal rules in the European Union will have to be revised to meet the new reality that has emerged in the wake of the fiscal, health, energy and war crises in Ukraine.

This should be in line with European solidarity and common goal, said the Minister of Finance and Digitalization of Spain, Nadia Calviño during the second working day of the 7th Delphi Economic Forum held in Delphi, April 6-9 and is under the auspices of A. Ε. of the President of the Republic, Mrs. Katerina Sakellaropoulou.

However, the Spanish minister separated the need for short-term budget support in dealing with crises, such as the pandemic and now the energy crisis and the effects of the war, from the medium-term adjustment of fiscal rules. As he explained, at the moment initiatives are being taken at state level, such as in Spain and at EU level. Spain, for example, is working with the European Commission to develop plans for energy autonomy in the region. This, however, must be done across Europe. Corresponding initiatives should be taken on uniform financial rules, which should be effective and at the same time appropriate.

On the European and Spanish economies, Ms Calviño said all forecasts showed rising inflation and slowing growth. But the EU is far behind. and Spain from recession or stagnant inflation, as the economy continues to grow, while a critical point is labor market dynamics. The investments, the big investment plans through the Recovery Fund and especially the increase of jobs are indicators of optimism, the Spanish minister concluded, in the panel which was coordinated by the Bloomberg News journalist, Nikos Chrysoloras.