MNI BRIEF: EU's New Fiscal Rules Approved, Opening Way To EDPs

The European Parliament on Tuesday backed a reform of the European Union’s news fiscal rules by a sizable majority despite opposition from far-left, right-wing nationalist and Green political groups, opening the way to Excessive Debt Procedures against as many as 10 states in June.

Talks between the European Commission, the Parliament and the Belgian EU Presidency earlier this year made further concessions to MEPs on public investment, debt reduction and on the social dimension of the rules, but

a series of strict new "safeguards" to ensure more automatic deficit and debt reduction also alienated political groups on both left and right.

Economy Commissioner Paolo Gentiloni told the parliament that the final package was "a good compromise,” though a member of his centre-left Democratic Party, which abstained in the votes, told MNI it was a “partial return to austerity” and would make it difficult for indebted countries to fund investment. (See MNI: 5-10 EU States Seen Facing Excessive Deficit Procedures)