-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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 AccessMNI SOURCES:Fiscal Hawks May Block Plans To Ease EU Debt Rules
A proposed overhaul of the eurozone's strict limits on public debt is likely to lead to few changes, with fiscal hawks within the European Commission strongly resisting any loosening of the rules to allow governments to spend more, EU officials said.
While EU Economic Affairs Commissioner Paolo Gentiloni pushed once again for ambitious reform of the Stability and Growth Pact in a keynote speech last week to an internal Commission workshop, soundings of EU officials close to the discussion suggest that the gap between his views and those of prominent fiscal traditionalists, such as EU Commission Vice President Valdis Dombrovskis, remains unbridged.
"The compromise will be that the rules change marginally," one EU source suggested.
FRUGAL OPPOSITION
Officials also noted that opposition to more radical changes to the guidelines is also likely to come from the more fiscally hawkish EU member states, such as the so-called "frugal" countries grouping Austria, Denmark, Netherlands, Sweden and sometimes Finland, which opposed the EU's Recovery and Resilience Fund aimed at powering recovery from the Covid-19 pandemic.
Gentiloni wants the rules changed to make investment spending easier, but such is the strength of opposition to some of his ideas that some officials speculate that the currently active 'escape clause' from the Stability Pact, which was triggered by the Commission following the onset of the Covid crisis, may end up being deactivated without reformed rules being in place. This is something the Italian Commissioner wants to avoid.
Recent thinking has been that the escape clause would remain in place until the end of this year but that the SGP would be reactivated in 2022, but given the prevailing consensus on the need to avoid austerity, it is recognised that even a return to the current pact will have to be tempered with flexible interpretation.
FISCAL STANCE
"It's possible that the escape clause gets deactivated before new rules are legislated," another source said, "and then the flexibility in the current rules would have to be exploited in the interim."
Discussions on reform of the pact will intensify over the course of 2021, but no concrete milestones are yet in place.
Eurogroup finance ministers are due to decide on the fiscal stance for 2022 by the summer of this year and a discussion among member states on medium-term fiscal strategy would follow in subsequent months.
An EU official said that the plan remained for the Commission to launch a consultation exercise on pact reform later this year.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.