ECONOMY - FINANCE - BUSINESS / Economy

Continued freezing of Stability Pact does not change fiscal stance at euro area level, says Mr Donohoe

Brussels, 24/05/2022 (Agence Europe)

The European Commission’s recommendation to keep the Stability and Growth Pact frozen until the end of 2023 is “an important development” because it will allow Member States to maintain an “agile” fiscal policy in response to the economic consequences for the EU of the Russian invasion of Ukraine, Eurogroup President Paschal Donohoe said on Monday 23 May (see EUROPE B12958A1).

But “this decision doesn’t change our objective of progressively shifting our fiscal stance from...