War in Ukraine: the EU decides to maintain the suspension of budgetary discipline in 2023
The flags of the European Union waving in front of the Commission's headquarters in Brussels (photo illustration).
REUTERS - YVES HERMAN
Text by: RFI Follow
1 min
The European Union's budgetary discipline rules will remain suspended in 2023. Brussels took such a decision due to the economic shock caused by the war in Ukraine.
Advertisement
Read more
The EU's stability pact, which limits public deficits to 3% and debt to 60% of GDP, will be suspended again next year.
Brussels is taking such a decision in order to give more budgetary leeway to Member States faced with a sharp slowdown in their economy and rising prices, due to the conflict in Ukraine.
Above all, the European Commission wants to allow massive investments to eliminate the continent's dependence on Russian oil, gas and coal as quickly as possible.
Such an objective cannot be achieved by member countries if Brussels imposes too strict limits on budgetary expenditure.
The suspension of budgetary discipline was put in place at the beginning of 2020, after the outbreak of the Covid-19 pandemic.
It has enabled the 27 member countries to make exceptional expenditure to support businesses and households.
A policy which made it possible to overcome the economic crisis, but which left its mark.
The public debt of European countries, especially those in the South, has increased sharply.
►Also listen: The European Commission caught between energy emergency and climate emergency
Newsletter
Receive all the international news directly in your mailbox
I subscribe
Follow all the international news by downloading the RFI application
google-play-badge_EN
Ukraine
European Union
Economic crisis
finance