The new rules were provisionally agreed between the European Parliament and negotiators from member states in February. Countries with excessive debt will be obliged to reduce it by an average of 1%. annually if their debt exceeds 90%. GDP, and on average by 0.5 percent per year, if it is from 60%. up to 90 percent If the country's deficit exceeds 3%. GDP, they will have to reduce it in periods of economic growth to the level of 1.5%. and build a spending buffer in the event of difficult economic conditions.
“These rules give member states more room to invest”
The European Commission – as reported by the EP – will now find it more difficult to subject a Member State to the excessive deficit procedure if it carries out the necessary investments, and all national expenditure related to the co-financing of EU-financed programs will be excluded from the government's expenditure calculation, which is to create more incentives to invest.
At the request of MEPs, countries with excessive deficits or debts may ask the Commission to hold a discussion before it presents guidelines on the spending path.
“These rules give Member States more room for investment, flexibility (…) and for the first time a 'real' social dimension. Exempting co-financing from expenditure will enable new and innovative policy-making in the EU. We now need a permanent investment tool at European level that would complement these rules,” said German MEP Markus Ferber (EPP), who was the project's rapporteur.
Member States will have to submit their first national plans
In the next step, the Council (member states) now need to formally approve these rules. Once adopted, they will enter into force on the day of their publication in the Official Journal of the EU.
Member States will have to present their first national plans by 20 September 2024. These plans set out spending targets and how investments and reforms will be undertaken. Member States with high levels of deficit or debt will receive guidance on spending targets ahead of the plan.
Fiscal rules oblige member states to coordinate economic policies and avoid excessive debt. They are based on limits on the public deficit and debt, which should not exceed 3% respectively. and 60 percent GDP.
From Strasbourg Łukasz Osiński
