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Member States Could Derail Commission's Fiscal Rule Proposals

EU COMMISSION

The European Commission has published its latest proposal for reform to EU fiscal rules to take into account different members states' debt situations. Commission VP Valdis Dombrovskis stated that the reforms should create, “a simpler system of fiscal rules with greater country ownership and lower path of debt reduction,”

  • Full statement: https://ec.europa.eu/commission/presscorner/detail...
  • Commission Q&A on statement: https://ec.europa.eu/commission/presscorner/detail...
  • Paola Tamma at Politico: "This is a big change in the Commission’s economic thinking. Austerity was already abandoned [...] but this formalises it. There’s no guarantee that this will get the backing of EU countries. The Commission breached many of Berlin’s red lines, and this will make for tough negotiations ahead."
  • "Today’s proposals are only an “orientation” paper, with legal proposals due next year *if* leaders agree. Timeline/context is key: Commission would like a deal in March EUCO, to use new approach in its fiscal guidance for 2024 — an ambitious schedule [...]"

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