Informally European Union (ES) A group of Member States set up today at the Economic and Financial Affairs Council (ECOFIN) Ministry of Finance (FM) representatives.
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The like-minded people of the initiative are Austria, Finland, Latvia, Sweden, The Netherlands, Slovakia, Denmark a Czech Republic.
Unprecedented fiscal measures have helped to address the significant negative economic effects of the Covid-19 crisis, while affecting the sustainability of public finances in many EU countries. Representatives of the Ministry of Finance point out that in the negotiations on fiscal rules in Europe it has often been proposed to relax them. Given that sound public finances are at the heart of EU action and the cornerstone of monetary union, the new group is in favor of maintaining fiscal sustainability, combined with growth-enhancing reforms, at the heart of the EU’s common economic and fiscal policies.
Sustainable public finances create fiscal space for priorities and provide opportunities to support job creation and prosperity. Thus, the reduction of excessive debt should remain a common goal of the Member States, according to the group’s founders.
“The example of EU countries and also our closest neighbors shows that the path to prosperity is not related to living on debt, therefore fiscal sustainability is important even in post-pandemic conditions,” the Latvian Minister of Finance points out. Jānis Reirs (JV).
Finance ministers agreed to be open to discussions on improving the Stability and Growth Pact by promoting transparency and better regulation. It is essential that changes in fiscal rules do not affect the fiscal sustainability of Member States, the euro area and the EU as a whole.
Ministers also agreed that quality is more important than speed, so the current economic governance policy must be implemented in consultation with the European Commission, and it will take time. The abolition of the general development clause should not be linked to possible amendments to the Stability and Growth Pact.
The ECOFIN meeting will take place on 10 and 11 September in Kranj, Slovenia.
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