EU budget regulations are changing
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The EU is investigating whether the debt reduction law should be abolished due to the high level of public debt during the Covid crisis, a senior policymaker in Brussels said, as the controversy over the Stability and Growth Pact agreement began to grow.
Valdis Dombrovskis, vice-chancellor of the European Commission, said the EU was concerned that the current government on the committee was not “true” because the rise in the number of Covid-19-member countries was volatile.
The upcoming conference will also be featured call for some state-owned enterprises to be provided with adequate services under debt and legislation, he said on Saturday.
Dombrovskis’ comments come as EU finance ministers prepare for a political crisis over a reform of the bloc after a growing international lease of membership.
The EU suspended its monetary policy last year to address the crisis, giving member states a chance to boost their economy, but they should be re-introduced in 2023.
On Saturday, EU economic and policy leaders met in Slovenia for the first time to discuss their work on the labyrinthine agreement.
The Commission and the member states are approaching the topic because of the depth and remoteness divisions among the northern economies, with major southern heads that need to be considered.
Among the topics being discussed in Slovenia was EU legislation that required a 1/20 annual reduction in debt relief from countries with more than 60% of GDP debt.
Many officials agree that the law could lead to severe repatriation, with all EU debt up to 94% this year, while Italy will have about 160% debt.
Dombrovskis, who appears to be more economically sound, said the debt law was raised in the negotiations because he complained that “it would not be true in countries with high debt, especially now after the crisis”.
He added: “That is why we need to work on debt consolidation legislation which on one side ensures that people’s debt is reduced and on the other hand it is possible for all member states.”
Some of the changes discussed on Saturday were the idea of removing green businesses from fraudulent laws, in order to address the barriers that cost a lot of money to the group by changing the climate.
Paolo Gentiloni, the EU’s economic commissioner, has repeatedly warned that the EU would not be able to repeat the events of the last crisis, when public finances collapsed, due to the need to spend money on climate change over the next decade.
A statement from Bruegel’s think tank stated that achieving EU targets would require an increase in total green expenditure of 2% of GDP per year, while government spending would be between 0.5% and 1% of GDP.
Bruno Le Maire, France’s finance minister, said on Friday that “dealing with a major climate crisis” the EU had to look at the idea of releasing green money in calculating errors in EU economic policies.
Dombrovskis asserted that the concept of a “golden rule” in trade would be part of the Commission’s inquiry.
However careless ministers are highly skeptical of the idea, and have begun to combine their arguments against the growing changes in the Stability and Growth Pact.
In a press release issued before a meeting outside Ljubljana, the eight ministers said they were keen to discuss the “change” of the law, but also said their aim was to lighten the rules and make them more transparent.
Austria’s finance minister Gernot Blümel, who drafted the agreement, told the Financial Times that he was ready to discuss the changes, but doubted the countries’ efforts to keep their money out, saying he feared using the request “as an excuse for not following legitimate and legitimate laws.”
Mr Dombrovskis confirmed on Saturday that negotiations were still under way and that it was too early to say whether a change in the law was necessary. It would be necessary to establish a political alliance on any changes, he added.
In the past, some policy makers have argued that the Treaty and the Growth of the Coalition should be rewritten before the EU repeats the rules, but officials who met on Saturday said it was unreasonable to expect new laws to address the impending negotiations.
As such, the Commission may need to provide new guidance next year on how to implement flexible legislation in a way that will help you gradually reduce budget support rather than surprise.