-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Chart Packs -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI: Germany To Clarify Position On EU Debt Rules-Officials
EU officials are waiting for Germany’s coalition government to clarify its stance on the reform of Europe’s fiscal rules ahead of what are likely to be intensive discussions among finance ministers as well as within a still-divided European Commission in September, they told MNI.
Brussels officials expect Germany to submit a position paper in the coming weeks. But while German Finance Minister Christian Lindner is willing to see some public investment exempted from rules limiting borrowing under the Stability and Growth Pact, EU officials fear that agreeing a common position may be more difficult, given the make-up of the country’s red-yellow-green coalition.
Finance ministers will next discuss the issue in early September with the Commission providing its concept for reform later in the same month. The Commission has made clear that it wants its proposal to meet with broad support from EU states.
“The German position is very important, and I think the Commission would want to come forward with a proposal that would not be completely incompatible with a German proposal,” an official said.
While intensive discussions at the end of 2021 and early in 2022 gave the impression that an overhaul of Europe’s fiscal regime was progressing with agreement on measures such as giving countries more time to reduce excessive debt levels but keeping key metrics such as the 3% of GDP limit on budget deficits, Russia’s invasion of Ukraine and recent French National Assembly elections which saw setbacks for President Emmanuel Macron’s centrists have pushed the subject onto the backburner.
COMMISSION DIVISIONS
While southern countries have called for a significant relaxation of rules on debt, France has taken a more moderate line, and one official said it would not be surprising if Paris and Berlin eventually adopted a common stance. (See MNI: EU Steers Away From Big Changes To Debt Rules)
“We know that Spain and Italy are pushing for a substantial review of the fiscal rules and France has always been more moderate in its approach because it’s always more important for them to have a coordinated approach with the Germans,” a source said. “For all major reforms in the past that is what has happened, so it is not unreasonable to expect something similar again.”
Such a grand catalyst may be needed to get the much-delayed fiscal reform talks moving again after largely stalling following Russia’s invasion of Ukraine in February.
But differences exist within the Commission itself. Economy Commissioner Paolo Gentiloni is said to be pushing for an overall revamp of the governance regime, while Executive Vice President Valdis Dombrovskis supports a more interpretative review of the implementation of existing rules.
“The Commission is unsure about the form of the proposal,” a source said. “Will it be a mere logistical proposal, just a correction of the existing memoranda on the application of the rules or are we changing the framework and the rules themselves?”
While the long argument between Gentiloni and Dombrovskis appeared to be nearing resolution before the Ukraine war, sources say that the economic situation has since changed so dramatically that it is hard to predict which of these two camps now has the upper hand.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.