Brussels, 24/09/2015 (Agence Europe) - Several member states raised the question of the budgetary impact of hosting refugees on their territory, on Thursday 24 September at the extraordinary European summit on the EU's response to the migration challenge (see EUROPE 11395).
Italy and Austria argue that the mass influx of migrants constitutes an exceptional circumstance within the meaning of the Stability and Growth Pact.
How can it not be, given the fact that the issue has led to the holding of three extraordinary European summits, the Italian Prime Minister, Matteo Renzi, said on Thursday 24 September, upon leaving the summit. On the three clauses authorising more flexibility in interpretation of European budgetary rules, he referred to a provision dating from 1997. This clause allows states to show a higher public deficit, as long as it remains below the threshold of 3% of GDP.
Something referred to by a number of speakers is the fact that the costs borne by their countries for hosting refugees should be taken into account in the application of the Stability and Growth Pact, the Austrian Chancellor, Werner Faymann, said. “The member states should have the possibility to certain exceptions and calculations to be taken into account, but there is no agreement today”, he added.
Preferring not to nail her colours to the mast, the German Chancellor, Angela Merkel, said that a “precise” analysis of the costs actually borne would be necessary, but added that she had “no firm position” on the issue.
In early September, at the informal meeting of the finance ministers, the Luxembourg Presidency of the Council asked the European Commission to analyse the impact of the massive influx of refugees with regard to the Stability Pact, with a view to presenting an initial assessment at the Ecofin Council to be held in Luxembourg on 5 and 6 October (see EUROPE 11387).
According to the Commission's spring forecasts, Italy's public deficit is expected to stand at 2.6% of GDP in 2015, after a level of 3.0% in 2014, and that of Austria 2.0% of GDP, following a level of 2.4%. (Original version in French by Mathieu Bion)