• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

EU Commission to launch EU budget rules review on Oct 19

October 5, 2021 by David Barret Leave a Comment

October 5, 2021

By Jan Strupczewski

LUXEMBOURG (Reuters) – The European Commission will publish on Oct. 19 its assessment of the economic impact of the pandemic on the European economy and its implications for EU budget rules as it launches a debate on how to change the rules that underpin the euro currency.

EU budgets rules, called the Stability and Growth Pact, set limits on government borrowing to safeguard the value of the euro now used by 19 EU countries. They are suspended until 2023 to give governments leeway to fight the coronavirus pandemic.

“The Commission plans to adopt on 19 October a Communication that will assess the impact of the crisis and its implications for the economic governance review,” European Economic Commissioner Paolo Gentiloni told a news conference.

“A wide-ranging and inclusive engagement with all stakeholders is necessary, with the objective of achieving consensus on the way forward well in time for 2023,” he said.

A review of the rules is necessary because the rules have grown increasingly complex after three revisions since the euro was set up in 1999.

Many governments have also called for their simplification and update to match the changing economic realities more than 20 years after the original framework was created.

“We will frame the discussion with the lessons to be learned from the pandemic,” Gentiloni said. “We will come with proposals next year,” he said noting that with the rules due to be reinstated in 2023, the window of opportunity was limited.

Gentiloni said one of the issues the review would have to address is how to deal with the huge public debts that governments have accumulated during the pandemic.

The rules now say that government deficits should not be higher than 3% of GDP and debt no higher than 60% of GDP. If debt is higher, it should be cut by 1/20 of the excess above 60% every year.

But with average government debt in the euro zone now at 100% of GDP, such rules are no longer practical and the Commission will have to find a way to acknowledge that reality while assuring markets that euro zone debt would be sustainable.

Many policy-makers also insist that the revised rules should include some special status for investment at a time when Europe is embarking on a huge programme to transform its economy to reduce CO2 emissions to zero by 2050.

(Reporting by Jan Strupczewski, Editing by Nick Zieminski)

Source Link EU Commission to launch EU budget rules review on Oct 19

David Barret
David Barret

Related posts:

  1. Mexican president’s legal counsel steps down, ally to step in
  2. The best PlayStation Classic prices and sales for September 2021
  3. Adobe jumps into e-commerce payments business in challenge to Shopify
  4. Investors with $4 trln assets aim to tackle Asian firms on climate change goals

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • NGC 2775: This Galaxy Breaks The Rules Of “Galactic Evolution” And Baffles Astronomers
  • Meet The “Four-Eyed” Hirola, The World’s Most Endangered Antelope With Fewer Than 500 Left
  • The Bizarre 1997 Experiment That Made A Frog Levitate
  • There’s A Very Good Reason Why October 1582 On Your Phone Is Missing 10 Days
  • Skynet-1A: Military Spacecraft Launched 56 Years Ago Has Been Moved By Persons Unknown
  • There’s A Simple Solution To Helping Avoid Erectile Dysfunction (But You’re Not Going To Like It)
  • Interstellar Object 3I/ATLAS May Be 10 Billion Years Old, This Rare Spider Is Half-Female, Half-Male Split Down The Middle, And Much More This Week
  • Why Do Trains Not Have Seatbelts? It’s Probably Not What You Think
  • World’s Driest Hot Desert Just Burst Into A Rare And Fleeting Desert Bloom
  • Theoretical Dark Matter Infernos Could Melt The Earth’s Core, Turning It Liquid
  • North America’s Largest Mammal Once Numbered 60 Million – Then Humans Nearly Drove It To Extinction
  • North America’s Largest Ever Land Animal Was A 21-Meter-Long Titan
  • A Two-Headed Fossil, 50/50 Spider, And World-First Butt Drag
  • Interstellar Comet 3I/ATLAS Is Losing Buckets Of Water Every Second – And It’s Got Cyanide
  • “A Historic Shift”: Renewables Generated More Power Than Coal Globally For First Time
  • The World’s Oldest Known Snake In Captivity Became A Mom At 62 – No Dad Required
  • Biggest Ocean Current On Earth Is Set To Shift, Spelling Huge Changes For Ecosystems
  • Why Are The Continents All Bunched Up On One Side Of The Planet?
  • Why Can’t We Reach Absolute Zero?
  • “We Were Onto Something”: Highest Resolution Radio Arc Shows The Lowest Mass Dark Object Yet
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version