Brussels is not abandoning the 3% deficit threshold but will take into account investments in the debt reduction effort.
The countries of southern Europe, those which have been derided under the nickname of “Club Med“, can blow. Scalded by the multiple adjournments of the proposal to reform European budgetary rules, the most indebted States of the Union finally saw the Commission take the plunge on Wednesday.
The current budgetary rules, suspended since the start of the pandemic and which must remain so until the end of 2023, should therefore be reformed before coming into force again. A relief for the South, as northern countries like Germany continued to support them, touting their “flexibility“.
Read alsoBrussels’ plan to finance the budget
Not only the principle of a reform is well recorded, but in addition it promises to be large-scale and goes in the direction of more flexibility. Exit, for example, the rule according to which countries indebted above 60% of their GDP must reduce it by 1/20th per year. A goal now considered harmful to growth because it would impose policies…
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