Only correct enforcement will make the fiscal rules work

09.11.2022 8:56

Only correct enforcement will make the fiscal rules work

Euro coins and banknotes

For the EPP Group, a credible economic governance framework is based on sound rules and their compliance and enforcement. “Unfortunately, the latter has not been the case for years and the fact that the Commission has to review the fiscal rules simply proves it", explained Markus Ferber MEP, the EPP Group Spokesman in the Economic and Monetary Affairs Committee, as the Commission is expected to put forward its ideas on the Economic Governance Review today.

The so-called Stability and Growth Pact has become more and more complex over the years and has been a clear source of tensions. “Whether one considers the current framework appropriate or too severe, it is clear that nobody is satisfied with the way Commission interprets it”, said Ferber. “To give just one example, France repeatedly breached deficit rules and was never fined despite what the legislation specified.”

“If the overall objective is still to support debt sustainability and sustainable growth, we cannot be satisfied with weakened proposals or simple guidelines, especially when it comes to the enforcement part. What the Commission needs to put on the table is real effective instruments and the willingness to actually apply them.”

“As regards the implementation of fiscal rules, it’s true that the Commission has always been in a dilemma”, recalled Ferber. “On the one hand, it sees itself as a political actor. On the other hand, it has to be a strict and unforgiving referee. A referee that is not willing to show a card will not be able to enforce the rules of the game. I hope Gentiloni is lucid about this paradox and that he will present a solution to escape this dead end.”

Note to editors

The EPP Group is the largest political group in the European Parliament with 176 Members from all EU Member States

Other related content