The European Parliament is expected to give the final green light on Tuesday to new European Union (EU) budget rules on deficits and public debt, which are expected to be approved by member states and come into force on September 30. April.
In the last plenary session of the legislature, held in the French city of Strasbourg, members of the European Parliament must give their final approval (adopting preventive “guidance,” adjudicating on “corrective” measures and approving the directive itself) during a review of the scope of EU economic governance rules.
A European source explained to Lusa that after the green light expected today, the countries’ permanent representatives to the EU will have to pass the three bills next Friday.
The package will be confirmed by Council member states at a meeting next Monday and will be published in the Official Journal of the EU on the same day and come into force a day later, therefore on April 30. added by the same source.
As fellow EU lawmakers – the Parliament and the Council – finalized approval of these new community rules on government deficits and debt, member states (including Portugal) only needed to send a simplified version of the Stability Program to Brussels.
If, as expected, new European fiscal rules come into force in the meantime, countries will have more time, until September, to submit a national plan to the European Commission.
These will be new national fiscal and structural plans (they will no longer be called national reform and stability programs) and will include measures to correct macroeconomic imbalances and guidance on priority reforms and investments for four to seven years.
Today’s approval comes after the European Parliament and EU member states reached a preliminary agreement last February to reform the bloc’s fiscal rules, which aims to ensure public finances are restored while preserving investment.
This is the planned resumption of these fiscal rules after their suspension due to the Covid-19 pandemic and the war in Ukraine, with new wording despite the usual limits of 60% of gross domestic product (GDP) for public debt and 3% of GDP for deficits .
Debt reduction is expected to be at least one percentage point per year for countries with debt levels above 90% of GDP (as in Portugal) and half a percentage point for countries between that ceiling and the 60% level. GDP.
Member States will have to prepare their national plans, which will be assessed by the European Commission, identifying a period of at least four years to put the debt on a downward trajectory, which could be seven years in the face of reforms and investments (for example included in recovery and resilience plans ).
Despite this, an annual government spending cap will be introduced to maximize distraction.
Countries that do not comply may face excessive deficit procedures and penalties.
Author: Lusa
Source: CM Jornal
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