Free Trial
BONDS

Italy vs Germany

HONG KONG

CPI Inflation Rises By 1.3% In April

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 Access
MNI (Brussels)

European Commission Executive Vice President Valdis Dombrovskis said on Monday “areas of broad agreement seem to be emerging” in talks on overhauling the bloc’s rules on borrowing and debt, and that he hoped for a constructive approach in talks as new finance ministers took their posts in several countries.

“We need a credible debt reduction pathway, but we also need to be realistic and allow scope for economic recovery and green and digital transition,” he said, as the Eurogroup meeting of finance ministers got underway in Brussels.

The emerging consensus includes a more gradual approach to debt reduction, including dropping the rule calling for excess debt to be reduced by one twentieth a year. There was also agreement on the need to simplify the rules and to move away from “directly unobservable indicators, like output gaps and structural balances,” he said.

Separately, new German Finance Minister Christian Lindner reiterated his view that the EU’s Stability and Growth Pact debt rules had proved their flexibility during the Covid crisis and that now was the time for states to rebuild fiscal buffers. Fiscal consolidation would also be key to unblocking Banking Union talks, he said.

But,new Dutch Finance Minister Sigrid Kaag distanced herself from the so-called Frugal group of countries, saying “We are looking for common ground.”

MNI Brussels Bureau | david.thomas.ext@marketnews.com
MNI Brussels Bureau | david.thomas.ext@marketnews.com

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.