On Monday 28 March, the European Commission published a report summarising the 225 contributions, including 21 from EU Member States and four from third countries, to the reflection on the reform of the European economic governance framework that it relaunched in October (see EUROPE 12815/5).
According to the Commission, the analysis of the responses to this consultation shows that many stakeholders advocate fiscal rules that stimulate economic growth, address social issues and support the climate and digital transitions.
Public debt will certainly have to be reduced, but the trajectory for reducing this debt, which has risen sharply with the Covid-19 pandemic, should be realistic and gradual in order to avoid negative effects on growth, stress a majority of respondents to the eleven questions asked. Many advocate incentives to encourage investment, especially in the green transition, although some recommend caution in this area.
It should be noted that a majority of respondents also support the establishment of a central EU fiscal capacity, in particular for macroeconomic stabilisation.
There is also a consensus on the issue of simplifying the fiscal rules. The experience gained in the design and implementation of national recovery plans under the Next Generation EU Recovery Plan, whereby a state contractually commits to stimulating investment and structural reforms in exchange for European financial support in the form of grants and loans, could inspire the further reform of the European economic governance framework.
The Commission will continue its discussions with stakeholders. It is expected to unveil its proposals for reforming European fiscal rules before the summer, which could include legislative proposals (see EUROPE 12871/3). While the Stability and Growth Pact is applicable again from 2023, budgetary guidelines will apply in the meantime (see EUROPE 12902/18).
The Russian invasion of Ukraine, which could not be taken into account in the public consultation that ended at the end of December, could upset this timetable.
More info at: https://aeur.eu/f/10b (Original version in French by Mathieu Bion)