Economic governance
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.
EU’s revised fiscal pact to consider ‘golden rule’ on investment
The European Commission will propose towards the end of the year how to simplify the European Union's complex budget rules, cut accumulated debt and boost investment, European Economic Commissioner Paolo Gentiloni said on Thursday (4 March).
Commission wants to keep fiscal rules suspended in 2022
The European Commission said on Wednesday (3 March) that the Stability and Growth Pact should remain suspended next year as the European economy needs additional stimulus to return to the pre-crisis level.
EU likely to waive borrowing limits again in 2022
The European Union is likely to waive limits on government borrowing again in 2022, given persistent uncertainties about the pace of economic recovery once the coronavirus pandemic is contained, officials say.
The Coronavirus exposes the Netherlands as a tax haven – again
Governments miss out on billions of tax revenues annually as the result of tax havens such as The Netherlands. The Coronavirus pandemic tellingly shows how such tax havens undermine public policy and cohesion within the EU, argues Boris Kowalski.
EU’s Gentiloni calls for greater involvement of unions in recovery plans
The economic crisis caused by COVID-19 could turn into a “social crisis”, the EU's economic affairs commissioner Paolo Gentiloni has warned, calling for greater involvement from trade unions in the elaboration of national recovery plans.
Portuguese minister: Fiscal discipline suspension should continue due to second wave
Portugal's finance minister said on Monday (25 January) that the stimulus to the European economy must be maintained until the COVID-19 pandemic “loses momentum”.
2021: Build back to the future
The EU will double down on its efforts to use the Covid-19 crisis to accelerate the ‘Green’ and digital transitions, fuelled by its €1.95 trillion stimulus, an intense policy agenda and new trade opportunities to improve its global standing.
Commission green-lights extra spending to avoid double-dip recession
The European Commission has given its blessing to the draft budgetary plans submitted by the 19 eurozone countries, containing the extra spending to combat the risk of a new recession, but warned about the growing imbalances in many EU economies.
Economic support will last ‘as long as necessary’, says Gentiloni
Given the increasing number of covid-19 cases and the risk of a double-dip recession, the support to the European economy will be maintained “as much as is needed, for as long as is needed”, said on Tuesday (27 October) commissioner for Economy, Paolo Gentiloni.
Germany’s Scholz sees ‘no way back’ from EU joint debt
German Finance Minister Olaf Scholz said Sunday (23 August) that the European Union's recovery package financed by joint borrowing was a long-term measure rather than a short-term coronavirus crisis fix, contradicting Chancellor Angela Merkel.
ECB to sit tight as EU leaders shape virus recovery plan
European Central Bank governors are expected to refrain from doling out fresh stimulus medicine Thursday, hoping EU leaders will do their bit to shore up the crisis-hit region with a huge coronavirus recovery plan.
Italy, Spain and France worst performers as recession deepens
Italy, Spain and France will register the worst economic downturn among eurozone countries this year as the contraction will be more severe than previously expected, according to the latest European Commission forecast published on Tuesday (7 July).
Joint EU debt must not become a regular thing, says Germany’s Weidmann
A decision by European leaders to issue joint debt to finance coronavirus aid for weaker member states should remain an exemption and not serve as a blueprint for future budget challenges, Bundesbank President Jens Weidmann said on Sunday (26 July).
EU fiscal watchdog wants to scrap ‘unrealistic’ 60% debt limit
The European Fiscal Board on Tuesday (1 July) recommended to get rid of the EU's debt threshold of 60% of GDP and instead adopt realistic debt targets specific to the bloc's national economies.
Independent report unveils flaws in Greek bailout
Eurozone creditors who designed and supervised Greece's bailout paid “insufficient attention” to the Greek social needs, had inadequate strategies and pursued damaging fiscal adjustment in the bailout programmes agreed with Athens, an independent evaluation concluded
Ex-Eurogroup boss: Nobody is so stupid to propose to ‘just go back under 3% deficit’
As one of the most influential Eurogroup figures during the previous crisis, Thomas Wieser chaired the preparatory meetings of eurozone finance ministers between 2011 and 2018. In an interview with EURACTIV, the American-Austrian economist described the EU’s fiscal rules as “bad practical economics”, in particular for handling a crisis such as the current one.
Commission vows to break with troika-type conditions in recovery phase
It is increasingly evident that the European Commission has no intention to return to the tight cash-for-reform system to manage the recovery funds and that ‘hawkish’ member states could find it difficult to turn the proposed procedure into a troika-type oversight.
France wants EU budget rules suspended through 2021
France on Thursday (21 May) called on the EU to suspend its strict budgetary rules for member states for this year and next due to the severe hit economies have taken during the coronavirus pandemic.
Coronavirus will trigger the deepest recession in EU history
The economies of EU countries will shrink by 7.4% this year as the coronavirus crisis is set to cause the worst recession in the bloc’s history, according to the European Commission's spring forecast presented on Wednesday (6 May), which also foresaw a significant rebound in 2021.
COVID-19: EU’s plan to save the economy
The European Commission estimates the economic impact of the coronavirus outbreak could be greater than the financial crisis in 2008. In order to keep the economy running, the EU executive introduced flexibility for funds and national expenditure, member states approved...
Eurogroup to discuss EU-wide unemployment reinsurance scheme
The European Commission is planning to present to EU finance ministers next week its pan-European unemployment reinsurance scheme proposal to support the most affected countries by the coronavirus.