On Thursday 10 July, the European Commission indicated that discussions were underway with the Member States on the issue of asymmetry in treatment, under the Stability and Growth Pact, between countries subject to an excessive deficit procedure (EDP) and those without an excessive public deficit (less than 3% of national GDP) in the event of activation of the national derogation clause allowing an increase in military spending (see EUROPE 13672/24).
“We’re not looking at changing the core [budgetary] rules, but we’re looking at bringing additional clarity”, said Balazs Ujvari, the Commission spokesman responsible for budgetary issues. These informal discussions are taking place as part of the updating of the Pact’s “code of conduct”, made necessary by the review of the Pact in 2024, and results are not expected before “autumn”, he added.
Italy has raised the issue of the asymmetry of European rules, which would penalise countries subject to an EDP that activate the Pact’s national opt-out clause to increase their military spending. Using this clause would have the effect of increasing the time needed to exit an EDP, and would therefore require the countries concerned to make greater efforts to consolidate their budgets. (Original version in French by Mathieu Bion)