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MNI BRIEF: EU Officials Disagree Over Impact Of Fiscal Rules

(MNI) Brussels

European Commission Vice President Valdis Dombrovskis and Spanish Economy Minister Nadia Calvino publicly differed over whether new EU fiscal rules currently under negotiation would be less strict than the previous regime.

"Definitely the new system is less strict than the current system," Dombrovskis said, pointing to the ditching of the 1/20 rule, according to which states with public debt over 60% of GDP had to reduce the excess by 1/20 per year.

Even with the adoption of the safeguard proposals backed by Germany, the new regime would have less requirements than presently, he added.

But Calvino, sharing a platform with Dombrovskis, insisted that the latest compromise proposal was "not less strict,” noting that the previous rules were not enforced in practice.

The point remains politically sensitive as negotiations enter a difficult endgame. Germany and France remain split over how to define an excessive budget deficit, with each side saying the issue would be a dealbreaker for them. (See MNI: Talks Turn Tough Ahead Of Dec 8 EU Fiscal Rules Meeting)

MNI Brussels Bureau |
MNI Brussels Bureau |

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