European Union finance ministers will meet this Wednesday in an extraordinary video conference to try to “close” reform of fiscal rules with deficit and debt ceilings set to resume in 2024 after recent disagreements.
In anticipation of this extraordinary meeting, European sources reported “significant progress” in the negotiations and there is therefore a “tremendous desire to reach an agreement” and “overcome differences” among the 27 member states, especially among those who want more. flexibility and those that require countries to guarantee that they will reduce deficits and public debt.
The meeting comes after hours of discussion at a meeting of European guardian governments in the middle of this month about economic governance reform, a debate that has been going on for months and when the rules are expected to come into effect. will resume next year.
Recently on the table was a Spanish proposal that would cut debt by at least one percentage point per year for countries with debt ratios above 90% of gross domestic product (GDP) and by half a percentage point for those between that level and the ceiling. 60% of GDP.
The Spanish proposal also defends the target of reducing the deficit to 1.5% as a safety margin, even if the government account deficit falls below the 3% of GDP ceiling.
The demands have been put forward by a group of “frugal” countries led by Germany, which has always called for debt quantification, but is being challenged by countries such as Italy and France, which are demanding more flexibility.
France even admitted that structural adjustment should be reduced from 0.5% of GDP to 0.3% for countries that are committed to investment and reform, but the Paris proposal was not well received by Berlin.
What is certain is that, given the European elections in June 2024, this file should already be “closed”, given the time required for negotiations between legislators (Council and Parliament).
The debate comes as these fiscal rules are expected to be resumed next year, after being suspended due to the Covid-19 pandemic and the war in Ukraine, with new wording despite the usual 60% of GDP ceilings for public debt and 3% of GDP . GDP per deficit.
Author: Lusa
Source: CM Jornal
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.