The Commission considers that the exemption clause could expire in 2023.
On the basis of preliminary information, the European Commission estimates that the relaxation of the budgetary rules will continue next year. Last year, following the impact of the interest rate crisis, the EU introduced a general exemption clause in the Stability and Growth Pact, which allowed member states to derogate from fiscal requirements.
In normal times, the EU uses the Stability and Growth Pact to control the spending of its member states. For example, the agreement stipulates that the general government deficit should be kept at no more than 3% and the general government debt at 60% of GDP.
The Commission considers that the derogation clause could expire in 2023. However, this will require the approval of the Member States.
Vice chairman Valdis Dombrovskisin In considering the abandonment of the opt – out clause, the Commission will pay particular attention to when the economy returns to pre – crisis levels, ie at the end of the year.
Commissioner for Economic Affairs Paolo Gentiloni argued that it was better to do too much than too little to support the economy. According to Gentilon, it is clear that the public finances of the EU countries will still need support in 2022.
Source site www.is.fi