Europe’s finance ministers have struggled for months to find a compromise to reform the so-called Stability and Growth Pact – and have now agreed on common debt rules. The German department head Lindner is satisfied.
The finance ministers of the European Union have agreed on a reform of the common debt rules. This should give highly indebted EU states more time to reduce their deficits and additional scope for investments.
In recent years, debt levels have jumped to record levels due to the corona pandemic and the fight against high energy prices in the wake of the Russian attack on Ukraine. Europe’s finance ministers struggled for months to find a compromise to reform the so-called Stability and Growth Pact. The basis was a proposal from the European Commission in April. The plans still have to be accepted by the states and negotiated with parliament so that they can come into force.
Previously agreement between Germany and France
According to the new rules, EU states that are too indebted must, on average, comply with a minimum level of reduction in deficits and debt levels every year. Germany in particular had pushed for this. Overall, the rules are less strict and rigid than before. France, the second largest economy in the EU after Germany, and many southern European countries had insisted on this.
The agreement between the 27 countries was preceded by a German-French proposal, which Lindner and his counterpart Bruno Le Maire agreed on on Tuesday evening. In particular, the two economically strongest countries faced each other for a long time in the debate. An agreement between all 27 countries without an agreement between Paris and Berlin was considered almost impossible.
Lindner is satisfied
The new fiscal rules for the EU member states are more realistic and effective at the same time, wrote Federal Finance Minister Christian Linder (FDP) on Platform Stability policy has been strengthened.
His French counterpart Bruno Le Maire wrote on X on Tuesday evening about excellent news for Europe, guaranteeing healthy public finances and investments in the future.
Holger Beckmann, ARD Brussels, tagesschau, December 20, 2023 6:59 p.m