“This extension is necessary due to the increased uncertainty and the strong risks to economic growth in the context of the war in Ukraine, as well as the unprecedented rise in energy prices and disruptions to supply networks,” the EC said.
The EC repealed these rules for bloc members in March 2020, as measures to curb the spread of the coronavirus pandemic put the EU economy in the deepest recession since World War II.
These rules, or the Stability and Growth Pact, stipulate that the budget deficit of the EU member states must not exceed 3% of the gross domestic product, and the amount of debt – 60% of the GDP.
It was previously expected that these rules would come into force again on January 1, 2023, but the Russian invasion of Ukraine has changed that intention.
The EC notes that the bloc will now return to compliance in 2024.
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