The Commissioner for Economy, Paolo Gentiloni, said, on Monday 5 October, that the activation of the general escape clause of the Stability and Growth Pact, which froze the budgetary rules in 2020 because of the Covid-19 pandemic, “will remain active in 2021”.
We are not in the same situation as we were in the spring, but we are still living with the virus. For this reason, emergency budgetary measures and measures to promote economic recovery will have to “coexist” and the transition to a return to a normal situation will be “gradual”, Mr Gentiloni added at the end of the Eurogroup meeting. He called for “agility and flexibility” in the implementation of national fiscal policies.
In November, the Commission will present a proposal for a specific recommendation on the budgetary approach to be advocated at Euro area level for next year.
According to the president of the Eurogroup, ministers recognise the need to “start the journey” towards a return to sound public finances. But, the President of the Eurogroup, Paschal Donohoe, added, there is “a clear consensus” that now is neither the time for a change in fiscal policy, which remains appropriate for 2020, nor for setting a timetable or criteria for re-applying the Stability Pact. (Original version in French by Mathieu Bion)