MNI BRIEF: Escape Clause Extension; SGP Reform Later- Brussels

The EU Commission today confirmed the extension of the Escape Clause from the EU’s fiscal rules for a further year to the end of 2023, saying that heightened uncertainty, strong downside risks to growth, supply chain disruptions and energy price rises justified the move.

Commissioner for the Economy Paolo Gentiloni said governments had to be allowed the “flexibility to adapt their policies to unpredictable developments. The extension of the general escape clause to 2023 recognises the high uncertainty and strong downside risks in a situation where the state of the European economy has not normalised.”