Original title: The EU will continue to relax budget constraints in 2021 to support economic recovery
European Commissioner Gentiloni, who is in charge of economic affairs, said in Brussels on the 5th that the EU will continue to loosen its restrictions on member states' budgets in 2021 to support countries in responding to the challenges of the epidemic and better recovering domestic economies.
According to the general rules of the EU’s Stability and Growth Pact, the governments of member states need to comply with EU-level fiscal deficits and government debt requirements.
Specifically, the deficit rate of each country must not exceed the 3% red line, and public debt needs to be reduced year by year.
In March of this year, the finance ministers of EU member states agreed to temporarily relax the EU’s budget constraints on member states in order to allow member states to use more financial resources to stabilize the economy.
On the same day, Gentiloni said at a press conference after the Euro Group meeting that this measure will continue throughout 2021 and that EU fiscal policy will continue to support the economic recovery next year, whether in the euro zone or in individual member states.
He also pointed out that "mobility and flexibility" will be the key to EU member states' design and implementation of fiscal policies in 2021.
(Headquarters reporter Zheng Zhi)