Connect with us

Hi, what are you looking for?


EU executive to propose countries set own fiscal targets for 2024

 – The European Commission is likely to propose on Wednesday that EU governments set their own deficit-cutting goals when they prepare draft budgets for 2024, pushing ahead with its idea of country-specific debt reduction paths, an EU official said.

The Commission, the EU‘s executive arm, will publish on Wednesday its fiscal guidance for next year for the EU, to help coordinate the 27-nation bloc’s budget policies as the European Central Bank is trying to bring down record high inflation.

Until the outbreak of the COVID-19 pandemic in 2020, EU governments had to follow a common set of fiscal rules which call on all governments to cut debt by 1/20th of the excess over 60% of GDP every year and keep budget deficits below 3% of GDP.

But the rules were suspended during the pandemic and then again in 2022 because of the economic shock caused by the Russian invasion of Ukraine. The large differences in debt levels between countries now make a uniform application of the common rules across the bloc unrealistic.

Still, the one-size-fits-all debt reduction rules are to come back into force in 2024. But before they do, EU governments want them changed so that they better reflect the challenges of high public debt and need for investment that the COVID-19 pandemic and fighting climate change have created.

Despite some objections to the Commission idea of individual debt reduction paths from Germany, the EU executive arm is likely to propose that governments set their own targets for now, until a negotiated solution is reached later this year, one EU official close to the topic said.

EU Member States are to set their own fiscal targets that comply with the fiscal adjustment criteria set out in the Commission reform proposal, ensuring that the public debt ratio is on a downward path or that it remains at a prudent level and that the deficit is below 3% of GDP over the medium term,” the official said.

The Commission guidance will also apply to the so-called stability and convergence programs that EU countries have to submit to the Commission every April, in which they lay out fiscal plans for the next 3 years. – Reuters

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Source: The world’s biggest crypto exchange Binance and its CEO and founder Changpeng Zhao were sued by the US Commodity Futures Trading Commission (CFTC) on Monday for operating what...


REUTERS BRUSSELS — European Union (EU) countries’ energy ministers are set to give final approval on Tuesday to the bloc’s law to end sales...


NEWLYWEDS pose for a photographer in front of overflowing garbage bins in a street near the Eiffel Tower as garbage has not been collected...


A WOMAN walks on the ice to a measuring point on the Pers Glacier near the Alpine resort of Pontresina, Switzerland, July 21, 2022....


RAWFILM-UNSPLASH BERLIN  — Global investments in energy transition technologies must more than quadruple annually to stay in line with commitments made under the Paris...


FREEPIK THE UNPRECEDENTED fiscal firepower used to protect the vulnerable from the harsh socio-economic impact of the COVID-19 pandemic and the resulting economic contraction...

You May Also Like


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.