What new rules for Europe for the public deficit and the debt?

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FRANCE 2

Article written by

J. Gasparutto, C. Dalmar, F. Peeters – France 2

France Televisions

At the time of the health crisis, Europe decided to freeze the stability pact which required member countries not to exceed 3% budget deficit, and a debt of 60% of GDP. Today is better. But there is no question of suddenly going back. The pact will be reactivated in 2023 with, no doubt, new rules

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 which followed the financial crisis of 2008. “Europe claimed victory too soon and we paid the price in the weeks that followed“, chanted 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 countries of the European Union advocate a return to rigor. Austria, the Netherlands, Sweden and Denmark want to come back to austerity while Spain, Portugal, France and Italy want to remain flexible. For Emmanuel Macron, it is a debate from another century.

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