Suspended with the pandemic, the reform of the Stability Pact al center of negotiations between member countries
Stability Pact: reform yes, reform no. The issue of changing EU tax rules is at the center of the first meeting of the Eurogroup In the 2022, where the traditional takes place fracture between the hawks of the North and the Mediterranean States. A meeting in which the new German finance minister made his debut Christian Lindner, always a champion ofausterity and key player in the negotiations, expression of one of the founding countries and of the first European economy. Suspended with the pandemic, the Stability and Growth Pact is al center of negotiations between member countries in view of reactivation in 2023: on the one hand, there are the Frugali who want to restore it as soon as possible, on the other hand there are France, Italy and Spain who instead lead the front of those who want one review of the rules and parameters before reactivating it in order to eliminate its countercyclical character.
Stability Pact, the German Finance Minister Lindner: “Vfound an intelligent balance “
“The Stability pact has shown to be flexible during the crisis, now is the time to build the space in the budgets to make also the resilient public sector“said the falco Lindner, arriving at its primo Eurogroup and immediately making clear the boundaries within which the debate on the revision of tax rules must take place: “I am very much in favor of a reduction of public debt, it is also important for the banking union resolve the link between banks and sovereign debt “and Germany is” open to progress, but it goes found an intelligent balance between debt and investments “, specified the minister of the Scholz government who assured the “participation” of Berlin to the discussion “which we expect will really start in June when we know the European Commission’s proposal”.
Dombrovskis: “Some broad areas of convergence seem to emerge”
It fell to Valdis Dombrovskis, vice president of European Commission, prepare the common ground for discussion on the issue, since for the Latvian “they seem some broad areas of convergence emerge“on a greater gradualness of the reduction paths of public debts and on the simplification of the rules.
For the deputy of Ursula von der Leyen the consent concerns “in particular a greater graduality in the rules from debt relief and on the so-called 20th rule“, with reference to the rule which provides that in normal times the States must reduce the part of by one twentieth a year public debt exceeding the threshold of 60% of the Pil. A rule already little applied in practice, but that with the new levels of debt post-Covid it appears even less feasible. “We need a path to debt relief that is credible, but one that is also realistic and capable of sustaining economic recovery and the green and digital transitions“.
Gentiloni on the pro-growth reformist line of France and Italy
The European Commissioner for Economy, Paolo Gentiloni, guardian in Brussels of the respect of the Community fiscal rules by the single Member States has positioned itself immediately on the pro-growth reformist line of France and Italy. “From my point of view, one aspect that we must have very clear is that we must not repeat the old discussions” and that on the reform “we face a new situation, due to the levels of debt and due to the enormous need for investments“he stressed Gentiloni, according to which “stability is needed but also lasting and sustainable growth“.
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