EU negotiates new Stability Pact for 2023

Should we review the budgetary rules in Europe? Should we bring more flexibility in the deficits? The European Commission launches the debate, but its president, Ursula Von der Leyen, warns that there is no question of reliving the austerity cure that followed the financial crisis of 2008. “Europe claimed victory too soon and we paid the price in the weeks that followed”, said on September 15 Ursula Von der Leyen.

The European Stability Pact requires that deficits be kept below 3% of GDP and public debt below 60% of GDP. These rules were abolished until the end of 2022 to get out of the health crisis. Some EU countries advocate a return to rigor. Austria, the Netherlands, Sweden and Denmark want to come back to austerity. Germany seems in favor of it. Spain, Portugal, Greece, France and Italy want more flexibility and want to abandon the rules set in the 90s. For Emmanuel Macron, it is “a debate from another century “. One idea of ​​compromise would be to grant more flexibility in deficits to countries that invest in ecological transition. Discussions have started and promise to be very lively.