German Fin Min-Deal On Fiscal Rules Possible Before Christmas

EU Finance Ministers failed to reach an agreement on new fiscal rules after marathon talks in Brussels on 7 Dec and into 8 Dec. While reports suggest a number of issues held up the talks, the main schism remains between Germany and the 'frugals' on one side, demanding tighter rules for more highly indebted nations to trim deficits, and France, Italy and other southern countries in favour of more relaxed rules to allow for spending on defence and green transition while remaining within the rules.

• Wires carrying comments from German Finance Minister Christian Lindner on the meeting: 'Very positive atmosphere in negotiations of fiscal rules...German position is that EU must stay w/Ukraine, constitutional court ruling doesn't change our position...Am worried about the corrective arm of the stability and growth pact...excessive deficits must be reduced, not excused...deal on fiscal rules is possible before Christmas...Germany and France at 92% in agreement on EU fiscal rules, up from 90% yesterday.'
• Spain's El Pais also reporting that finance ministers have backed Spanish Finance Minister Nadia Calviño to head the European Investment Bank (EIB) over Danish European Commissioner Margrethe Vestager. Putting the southern European, leftist Calviño in charge of the EIB - seen as a key post in providing loans for infra projects, funds for the eventual reconstruction of Ukraine and climate change spending - could affect the handing out of top EU posts after the 2024 European Parliament elections.