Other Topics
    NewsEuropeGermany says the EU has "work ahead" to agree on a reform of debt rules

    Germany says the EU has “work ahead” to agree on a reform of debt rules

    Archive – German Finance Minister Christian Lindner – Kay Nietfeld/dpa – File

    The German Finance Minister, Christian Lindner, said on Saturday that the European Union (EU) still has “work ahead” to achieve a consensus on the next reform of debt standards.

    “Ideas on concrete reforms remain divergent. We still have work ahead of us,” he said on the sidelines of an informal meeting with his EU colleagues in the Czech capital Prague.

    Lindner explained that Germany is willing to make it easier for the directives to allow a return to sound public finances in the short term, in exchange for a long-term reliable path to debt reduction.

    Read Also:   The EU criticizes the cancellation of Pride in Belgrade and asks the Serbian authorities for explanations

    Germany has outlined its position in a document and is in favor of keeping the central borrowing limit but allowing a little more flexibility, especially as regards how quickly the debt must be repaid. .

    Instead, he proposes that the rules be applied more consistently in the medium term, while countries like Italy and France want even more flexibility, for example to exempt investments aimed at fighting climate change from debt rules.

    The EU Commissioner for Economic Affairs, Valdis Dombrovskis, has reported that he will present a specific reform proposal in October.

    Read Also:   Putin increases his approval rating among Russians to 81 percent

    The Stability and Growth Pact imposes maximum debt limits on EU states. The indebtedness of the community countries must not exceed 60 percent of their GDP. In addition, budget deficits must be limited to three percent of GDP.

    Some of the rules were not applied consistently in the past and need to be reformed. They were also suspended as many European countries had to take on huge debts during the crisis caused by the coronavirus pandemic. They will also not be fully applied again until 2024 due to the consequences of the war in Ukraine.

    Read Also:   Thousands rally in Kiev for Ukrainian unity and against Russian invasion

    Source: Europa Press


    Please enter your comment!
    Please enter your name here

    Latest Posts

    Read More