The Ministers of Economy and Finance of the European Union will hold a meeting this Friday in which they will discuss the fiscal rules proposed by the European Commission on April 26, although they are not expected to address specific aspects, they will try to move towards a future accu erdo that should be closed under the Spanish European presidency that will begin on July 1.
The objective is to close a final agreement before the end of this year, so the Spanish presidency of the European Council would be tasked with finalizing the negotiations. This is the current economic vice president of the Government, Nadia Calviño, at least until the polls endorse Pedro Sánchez or not to continue leading the Government. After the Swedish presidency got the council to agree joint conclusions that have guided the Commission in its work to complete the legislative package. Calvino has already stated that he will do everything possible to achieve this goal.
In fact, his German counterpart, Christian Lindner, stated last week in an interview with Europa Press and other European agencies in the ‘European Newsroom’ that he has full confidence in Calviño’s leadership to lead the negotiation around the return of some rules fiscal that, after four years frozen by the pandemic, will once again demand a reduction in the public deficit below 3% of GDP and a public debt below 60%. “If anyone can unite us all, it’s her” more austere rules.
The proposal that is currently on the table for the reform of fiscal rules gives governments greater power to decide how to meet these objectives, although it requires a minimum annual deficit adjustment of 0.5% of GDP up to 3%, while which proposes a gradual reduction of the debt over four years, extendable up to seven.
For its part, Berlin defends a minimum debt reduction of 1% of annual GDP for countries with higher debt, as is the case of Spain –which exceeds the forecast 110.6%– and 0. 5% for those less indebted, parameters that are considered plausible despite the fact that some countries criticize them for being too frugal. At the opposite extreme, like Italy and Greece, they are calling for a greater number of cases in which exceptions to the parameters can be included, in line with the traditional division of the North and South economies.
However, sources from the Ministry of Economic Affairs have highlighted the importance of the file, they have explained that Spain’s approach has been, from the beginning, to try to avoid this north-south separation and, instead, look for “bridges of gear” between different positions to achieve a joint composition of the text that can be agreed by the Member States.