Brussels announces end to suspension of • Table.Briefings

The European Commission is tightening the reins again on EU member states’ budget policies. The escape clause for debt rules is to expire at the end of the year. This means that member states will once again be threatened with deficit procedures if they incur excessive new debt.

The European Commission is allowing the suspension of debt rules to expire at the end of the year. EU Economic Affairs Commissioner Paolo Gentiloni said in Brussels that it had been right to trigger the so-called Escape Clause enshrined in the Stability and Growth Pact in spring 2020. This had enabled the member states to „cushion the economic shocks caused by Covid and the Russian war of aggression against Ukraine“. In the meantime, the economic situation in Europe has stabilized again, despite continuing high uncertainty, so that the deactivation of the Escape Clause is in order.

Brussels announces end to suspension of debt rules

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