• 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

  • Alien Abduction Or A Trick Of The Mind? A Down To Earth Explanation Of Close Encounters
  • Six Months Into Trump’s Presidency, Americans Report Record Low Pride In Being American
  • TikToker Unknowingly Handles Extremely Venomous Cone Snail And Lives To Tell The Tale
  • Scientists Sequence Oldest Egyptian DNA To Date, From A Whopping 4,800 Years Ago
  • “Uncharted Waters”: Large Hadron Collider Begins Colliding Oxygen For The First Time
  • 125,000-Year-Old Neanderthal “Fat Factory” Shows They Gorged On Bone Grease
  • On July 3, Earth Will Reach Its Farthest Point From The Sun – 152 Million Kilometers Away
  • NASA’s Perseverance Rover May Have Recorded Evidence Of Electrified Dust Devils On Mars
  • “Hymn to Babylon”: Missing Mesopotamian Text Dating Back Nearly 3,000 Years Discovered
  • Multiple New Species Of Cute Spotty And Stripy Geckos Discovered In Remote Cambodia
  • ChatGPT May Be Surprisingly Good At Piloting Spacecraft, Taking 2nd Place In Spaceflight Competition
  • Incredible Supernova Finding Shows That “Double-Detonation Mechanism” Happens In Nature
  • Soda Cans, Asthma Inhalers, And… Water Bottles? All Things That Could Explode In Your Car This Summer
  • Video: Is There An Ideal Sleeping Position?
  • If You Look Up At The Right Time Today, You Will See A Giant “X” On The Moon
  • We May Have Our Third Interstellar Visitor And It’s Nothing Like The Previous Two
  • Orcas Filmed Kissing (With Tongues) In The Wild For The First Time
  • How Easy Is It For A Country To Change Its Time Zone?
  • Earth’s First Commercial Space Station Set To Launch In 2026
  • Black Hole Moon: Rogue Planets With Weird Signatures Could Be A Sign Of Advanced Alien Life
  • 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