MNI BRIEF: EU States Need To Start Early On 2025 Budget Plans

European Union states will need to start work early on 2025 budget plans, given the tough fiscal environment, a senior EU official said on Thursday.

“Growth is expected to pick up and there is a clear need for fiscal buffers to be rebuilt and we need to complete the disinflation process,” the official said. “Budget preparations will need to start early – the final numbers will only be put out and voted on late in the year but it’s tough work preparing national budgets in these circumstances.”

Eurozone finance ministers on Monday will likely underscore the need for restrictive fiscal policy through 2025, he said, noting the need also to increase defence spending and fund green and digital transitions.

The transition to new rules this year is also creating “complications”, with parts of the old regime remaining in place, he said. (See MNI: EU Vote Pushes Back Fiscal Rule Implementation-Officials)