While EU finance ministers meeting in Brussels on Monday (23 May) discussed the pros and cons of the EU Commission’s proposal to keep the EU’s fiscal rules suspended for another year, civil society organisations used the opportunity to question the fiscal rules more fundamentally.
Given the circumstances, the European Union's economy is doing reasonably well. However, this success currently relies on the EU circumventing its own rules, putting into question how sensible they are in the first place.
Usually on opposite sides of the debate on fiscal rules, the Dutch finance minister Sigrid Kaag and her Spanish counterpart Nadia Calviño presented a proposal that could steer the reform of fiscal rules that is currently being prepared in the EU institutions.
With insecurity for the European economy increasing due to Russia’s war of aggression in Ukraine, the EU executive calls on countries to keep investing in economic growth and remains open about an eventual prolongation of the suspension of fiscal rules.
The new cohesion report by the EU Commission shows that a large part of public investment in cohesion countries stems from EU cohesion funds rather than from member states themselves whose own investments are constrained by EU fiscal rules.
In his inaugural speech to the German parliament, the liberal finance minister Christian Lindner argued for fiscal restraint but showed openness for more public investment to strengthen growth and decarbonise the economy.
The EU's economic policy agenda for the coming year is packed with negotiations on the bloc's fiscal rules, tax policies, minimum wages, and financial regulations. Here is a comprehensive look at what is coming up.
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.
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.
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.
The European Fiscal Board complained on Wednesday (10 October) that member states had failed to use strong economic growth to reduce their public debt, and called for a major change of EU fiscal rules to ensure better enforcement by the European Commission.
The leaders of Italy's ruling parties said on Tuesday (9 October) they would permit no change to the government's 2019 budget plan, despite financial market pressure and criticism from the country's central bank and the parliamentary fiscal watchdog.
EU officials in Brussels welcomed the confirmation of Luis de Guindos as Spain's economic affairs minister for a second term. The man is considered as an “extremely able” envoy of the Madrid government.
The ECB issued a strong warning to the EU institutions on Friday (9 September) about the “long-term consequences” of poor implementation of the fiscal rules, in the aftermath of the partial pardons given to Spain and Portugal, after they missed their deficit targets.
A strong group of commissioners was in favour on Wednesday (27 July) of imposing at least a symbolic fine on Spain and Portugal for breaching the Stability and Growth Pact, but Jean-Claude Juncker opted for a zero penalty - supported by German Finance Minister Wolfgang Schauble.
The European Commission is expected to fine Spain on Wednesday (26 July), but it will give two extra years to Madrid to adjust its budget - while the commissioners pledge a solution for Italian banks that will protect small investors.