Stockholm, April 28, (dpa/GNA) – European Union finance ministers on Friday met a proposal by the European Commission to give highly indebted EU countries more leeway to reduce debt with mixed reactions.
German Finance Minister Christian Lindner reiterated “important further amendments are necessary,” arriving at a meeting of EU finance ministers in Stockholm.
Berlin has been calling for stricter, binding annual targets to reduce public debt and deficits of highly indebted member countries.
The European Commission however proposed to give countries more flexibility to allow for needed investments to fight climate change and modernize economies.
The bloc’s strict debt and deficit rules have been suspended since the coronavirus pandemic prompted even frugal countries like Germany or the Netherlands to take on large amounts of public debt, prompting calls for reform.
Dutch Finance Minister Sigrid Kaag said her country was “quite enamoured” by the plans, but stressed the importance of “credible debt reduction” and oversight.
“The devil is always in the detail,” she added.
Belgian Finance Minister Vincent Van Peteghem however said he very much welcomes the proposal. He said reducing debt while focusing on investments and reforms was “the Holy Trinity.”
The currently suspended rules are set to apply again from 2024. EU finance ministers previously agreed on the need to finalize the reform before the end of the year.
Spanish Finance Minister Nadia Calviño, who will oversee negotiations in the second half of the year, said she will do her “utmost” to reach a compromise that will lead to lower debt levels but “ensures also strong growth and job creation” on time.
GNA