New fiscal rules agreed by ECOFIN go into the right direction

On 20 December 2023, EU finance ministers agreed to the Council’s position on the reform of the EU’s economic governance rules. Establishing new deficit and debt control rules, the agreement should guarantee gradual and sustained deficit and debt reductions, with a counter-cyclical impact and the protection of green, digital, social and defence investments.

SGI Europe has been calling for such revision of the EU economic governance framework for more than a decade. Following the announcement of the agreement, Valeria Ronzitti, SGI Europe General Secretary, said:

“SGI Europe welcomes that the Ministers successfully reached a deal today on its position for the new EU fiscal rules. We are thankful to the Spanish presidency for concluding those negotiations in 2023, especially considering that the lifting of the general escape clause without a proper reform would have represented a disaster for enterprises and citizens all over Europe. The upcoming trilogue with the Parliament and the Commission must ensure that the EU has learnt from its mistakes and acknowledges the importance of public investment, structural interdependencies across the EU and the unique circumstances of each member state.”

“Another €520bn public and private investment will be needed in the EU per year to deliver the EU Green Deal. To foster economic growth, support the green and digital transition, meet the investment challenge and maintain debt sustainability, the EU must chart a new course. The fiscal rules are merely a means to an end and must not be an end in themselves. SGI Europe will be vigilant about the trilogue not to reduce the space for sustainable growth and call on the institutions to deliver a positive final outcome of the negotiations, in time for the next EU elections.”