In adopting the report by Dominika Biegon (Workers, Germany), the European Economic and Social Committee (EESC) on Wednesday 27 October put forward “pragmatic solutions” that do not require a change of treaty to reform European budgetary rules, while the European Commission has just relaunched the reflection on the future of the European economic governance framework (see EUROPE 12815/5).
The Committee reiterates its support for the introduction of a golden rule in the Stability and Growth Pact to stimulate public investment by excluding it from the calculation of the public deficit. This golden rule would be combined with a spending rule that would only limit current expenditure.
The EESC also believes that in the transitional period before the legislative reform, but beyond 2022, and the end of the activation of the Pact's escape clause, the European Commission should provide guidance committing itself not to trigger an excessive deficit procedure and providing for the possible activation of the 'unusual event clause' on a national basis.
On the treatment of public debt, which has swollen to enable states to cope with the Covid-19 pandemic, the Committee draws on the recommendations of the European Fiscal Board and advocates a reduction path that is flexible and more adapted to national specificities.
See the 'Biegon' report: https://bit.ly/3befhIL Original version in French by (Mathieu Bion)