The new tax rules for EU Member States are both more realistic and effective.
EU economy and finance ministers agreed on Wednesday to an overhaul of EU debt rules. The Council “agreed on a new economic governance framework that guarantees stability and growth with balanced and realistic rules, adapted to current and future challenges”, stated the Spanish Presidency on X (formerly Twitter).
Finance Minister Magnus Brunner (ÖVP) advocated “strict, enforceable and clearly defined debt rules”. His German counterpart, Christian Lindner, and several other EU ministers were also skeptical about a more flexible interpretation of the EU Stability Pact, such as that demanded by France. “The new tax rules for EU member states are both more realistic and effective. They combine clear numbers of lower deficits and reduced debt ratios with investment incentives and structural reforms. The stability policy is strengthened,” said German Finance Minister Christian Lindner, welcoming the agreement on X (formerly Twitter).
According to the proposals discussed, EU states should present national plans with measures to reduce debt in the future. This would give Member States more room for maneuver and time to consolidate their budgets. The Maastricht ceilings of a maximum of three percent of the budget deficit and 60 percent of total debt remain unchanged. The safety lines required by Austria and Germany, i.e. quantitative targets, are intended to ensure sufficient debt reduction.
EU regulations on debt relief have been temporarily relaxed in recent years due to the effects of the corona pandemic and the war in Ukraine. After the ministers, it is now the European Parliament's turn.