Economic governance
EU to extend budget rule suspension because of Ukraine war
Rules against overspending by EU governments will remain suspended through 2023, extending a pandemic-era reprieve because of the war in Ukraine, sources said on Thursday (19 May).
New Dutch government under Mark Rutte wants to spend more
The coalition agreement of the new Dutch government under Prime Minister Mark Rutte foresees more spending on childcare, teacher salaries, and environmental issues, showing the increased influence of the centre-left, liberal party D66.
ECB plots stimulus exit as inflation looms
European Central Bank policymakers will gather on Thursday (16 December) for a crunch meeting, as soaring inflation heaps pressure on the bank to wind down its stimulus just as a new coronavirus variant threatens to derail the recovery.
French and German finance ministers stress common interests in first meeting
Although he is known to be a hardline opponent of public debt, the new German finance minister showed his openness to compromise during his first trip to Paris only days after taking office.
France sees chance of compromise with Germany on EU fiscal rules
France will be able to reach a compromise with the new German government to update the European Union's fiscal rules to face economic challenges following the COVID-19 pandemic, French Finance Minister Bruno Le Maire said on Monday (29 November).
German inflation hits highest in decades, increasing pressure on ECB
German consumer price inflation rose further in November to hit another record high, preliminary data showed on Monday (29 November), increasing pressure on the European Central Bank to react.
Eurogroup ministers discuss economic governance framework
Monday’s meeting of the eurozone finance ministers was the first opportunity to discuss the review of the EU’s economic governance framework. While Commissioner Gentiloni hoped for a fresh start in the debate, the Austrian finance minister Gernot Blümel insisted on keeping the current rules.
Discussing EU fiscal rules is a ‘terrible mistake’, says historian Adam Tooze
In an interview with EURACTIV, a prominent economic historian and chronicler of economic crises argued for a different relationship between politics and finance and a new understanding of inflation. According to Adam Tooze, the European Union should focus on growth and not get bogged down in an argument about fiscal rules.
€10 trillion in green public investments to grow out of climate change
According to a new study, the public sector could take the lead in transitioning to a green economy and help grow the economy at the same time, but only if there is a change in the fiscal rules that are currently debated in the EU.
ESM economists want to raise public debt limit to 100% of GDP
In a new discussion paper, economists of the European stability mechanism (ESM) suggest a simplification of the EU’s fiscal rules and their adaptation to changed economic circumstances.
Brussels relaunches EU fiscal reform, aims to boost green investments
The European Commission on Tuesday (19 October) took another step towards reforming the EU’s much-discussed fiscal rules, including the bloc's strict debt and deficit limits enshrined in the Stability and Growth Pact.
Architect of EU fiscal rules calls for reform
Ahead of a new push by the European Commission to reform the EU's fiscal rules, the chief of the bloc's bailout fund, Klaus Regling pointed out the danger of sticking to rules that have become “economically nonsensical”.
EU directive on minimum corporate tax expected before end of year
Days after 136 countries agreed on an international tax deal, a European Commission official announced that a directive to implement the corporate minimum tax rate might be forthcoming before the end of the year.
136 countries agree on international tax reform
More than 100 countries agreed on Friday (8 October) a reform of the international tax regime intended to make it fit for the digital age and respond to longstanding concerns about corporate tax evasion.
EU Parliament criticises member states’ inaction in debate on Pandora Papers
EU lawmakers criticised the bloc's finance ministers on Wednesday afternoon (6 October) for their inaction against tax avoidance, in a debate devoted to the Pandora Papers, the latest leak of financial documents exposing malpractice and tax avoidance by the rich and powerful across the globe.
EU finance ministers strike three countries off tax haven blacklist, ignoring Parliament’s calls
Following a new massive leak of financial documents, the so-called Pandora Papers, EU lawmakers called for more action against money laundering and tax evasion and urged the bloc's finance ministers to review the blacklist of global offenders. However, the ministers chose to remove three countries from the list on Tuesday (5 October).
Draghi on quest to challenge EU rules and grow out of public debt
Italian Prime Minister Mario Draghi unveiled an ambitious Italian budget for 2022-2024 last week, with deficits above the limits set by the Stability and Growth Pact, in what appears to be a bet on a change in the EU’s fiscal rulebook.
ECB-Lagarde reacts to MEPs’ inflation fears
European Central Bank chief Christine Lagarde told EU lawmakers on Monday that the recent uptick in inflation was likely to be a temporary phenomenon.
The Brief, powered by EPRA — The politics of the pact
The EU’s fiscal rule book was an early victim of the COVID pandemic, correctly, pushed aside by the need to keep businesses afloat as lockdowns derailed economies. But it has not been forgotten.
Commission hints at quick fix of fiscal rules in 2022
The European Commission said on Friday (10 September) that it will explore options to improve the Stability and Growth Pact by the end of next year, as member states are preparing for a bruising battle over the reform of the EU’s fiscal rules.
The new crusade for fiscal prudence
The frugal alliance stands to gain very little if their campaign for premature fiscal consolidation following the pandemic succeeds, but they risk exposing the entire EU to serious political and economic consequences, writes Anna Peychev.
Revamping fiscal rules requires a new understanding on debt sustainability
It is necessary to reform the European Union’s flawed macroeconomic architecture as the post-pandemic world demands a new fiscal rulebook to boost our economies, argues Margarida Marques.
The ECB needs political guidance on secondary objectives
While EU Treaties clearly stipulate that the European Central Bank “shall support the general objectives of the European Union", politicians cannot simply stand by, hoping that it will use its discretionary power to act on them, writes Grégory Claeys.