Thu. Oct 6th, 2022

Prague, 10 September 2022

On the second day of the informal ECOFIN Council meeting in Prague, EU Finance Ministers discussed the sustainability of public finances in European countries. Further development of the European framework for direct taxation to promote economic growth and remove obstacles to cross-border investment was also discussed.

A return to fiscal discipline and a call for the consolidation of public finances in EU countries on a sustainable track are among the main priorities of the Czech Presidency. Currently, the so-called escape clause from the rules of the Stability and Growth Pact is extended to 2023. This means that the European Commission will not fully apply the procedures in case of a breach of the fiscal rules for the maximum debt (60% of GDP) and deficit (3% of GDP).

“Although we have moved smoothly from the covid crisis to the energy crisis, we should not postpone the debate on the return of European countries to fiscal discipline. Today, European governments naturally need to increase public spending to help households and businesses facing high energy prices. However, we must not completely ignore the significant deepening of public debts in the EU over the last 20 years,” says Finance Minister Zbyněk Stanjura.

The debate also covered the cu…

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