EU: Brussels sounds the imminent end of "whatever it takes"
European Commission President Ursula von der Leyen in the European Parliament (December 2022).
© AP/Jean-Francois Badias
Text by: RFI Follow
1 min
After authorizing budgetary largesse from EU member states during the Covid-19 pandemic, then last year to limit the effects of the energy crisis, the European Commission is now preparing for a return to order.
The 27 are again called upon to show prudence in the management of their finances.
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The return of the
Stability and Growth Pact
, its exact name, is looming.
He had in fact been suspended since the start of the Covid-19 pandemic.
With one recommendation and two objectives: Reserve support measures for the most modest households, reduce state spending and encourage energy savings.
Especially since the Stability Pact must be reactivated on December 31... In this perspective, Brussels has asked the 27 to prepare their 2024 budgets by aiming for a return to below the 3% deficit "in the medium term".
In 2021, it reached 4.6% on average in the EU.
However, the European Commission intends to dust off the “old rules”.
This would be the third reform of the PSC since its implementation in 1997. The problem is that the new formula, which must be specified at the end of the month, will not be ready for the 2024 budget...
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To read also
: The European Commission presents its proposals to reform the Stability Pact
In the meantime, Brussels has therefore decided to take into account “certain elements of the reform guidelines” in its budgetary monitoring from next year.
The Commission's idea is to give EU countries more flexibility to invest in green and digital growth.
It is therefore the growth of current expenditure that Member States are encouraged to limit.
Excessive deficit procedures are expected to be reactivated in spring 2024 based on this year's fiscal data.
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