Germany and Austria are pulling together on the EU debt settlement
Germany and Austria want to pull together in the dispute over EU debt rules.
Berlin – Germany and Austria want to pull together in the dispute over the EU debt rules. “It is a firm fundamental belief that we must see government debt ratios falling again in Europe,” Finance Minister Christian Lindner said on Monday before a meeting with his Austrian counterpart Magnus Brunner in Berlin.
“The debt must be reduced so that fiscal stability is also secured and we maintain the ability of the central banks to act,” said the FDP politician. At the same time, investments must be able to flow into the competitiveness of the European economies and into clean technology. The main focus is on private capital, “but the states also have a responsibility here,” said Lindner.
Brunner was open to the planned and better enforceability of the debt rules, but emphasized that the Stability and Growth Pact already provides sufficient flexibility.
A possible reform of the rules for spending and debt of the EU states is currently being discussed in Brussels, driven by France, among others. The Stability and Growth Pact stipulates that countries should not borrow more than 60 percent of economic output. The pact was suspended during the Corona crisis, but is scheduled to come into force again in 2023.
According to the Commission, the debt ratio in the EU is now around 92 percent. There are big differences: Italy, for example, has debts of around 155 percent compared to the gross domestic product, the Netherlands around 57 percent. Germany is around 70 percent. Highly indebted countries fear that a quick return to stronger guidance could hurt recovery. (dpa)