MNI BRIEF: EU Fiscal Rule Reforms Possible In H2 2023-Spain

Final agreement among EU member states over a reform of the bloc’s fiscal rules could be reached during the Spanish presidency in the second half of 2023, sources from the Spanish government told MNI after the European Commission made public its proposal for an overhaul of the Stability and Growth Pact.

Madrid welcomed the Commission’s proposal, which was “inspired by the Spanish-Dutch paper presented in March in its basic principles of national appropriation, medium-term approach and recognition of countries’ differences,” the Finance Ministry said in a statement.

Spain is going to press for a quick approval of the reform, sources said.

In a statement, the German government welcomed the Commission's proposal, noting its calls for more flexibility but also more enforcement of the rules, and said it was worthy of discussion". In talks so far, Berlin has pushed for a stricter reshaping of the Stability and Growth Pact rules, with a more prominent role for the European Fiscal Board.