Brunner/Donohoe: EU needs clear rules for debt reduction and capital markets union

2023-12-18 18:20:23

Vienna (OTS) – On Monday, Finance Minister Magnus Brunner welcomed his Irish counterpart Paschal Donohoe to the Winter Palace of the Finance Ministry in Vienna. As head of the Eurogroup, Donohoe is crucially responsible for coordinating the tax and economic policies of the euro states.
In the joint working discussion, Brunner and Donohoe discussed, among other things, the reform of the fiscal rules, the introduction of the digital euro and progress in the Capital Markets Union.

“Europe’s long-term financial and economic stability depends on our competitiveness. With Paschal Donohoe, we have a representative at the head of the Eurogroup who can be relied on on these issues. We have to act thoughtfully, seriously and coordinated, which is why this exchange is so valuable. We have to invest in the long term without sliding into subsidy competition. It takes common sense and international exchange. We do this within the framework of the Eurogroup or in working discussions like today,” said host Finance Minister Magnus Brunner.

The topic of the digital euro is being intensively discussed in public and requires great sensitivity. The added value for citizens must be clearly presented and understandable. A distortion of competition in the financial sector would also be counterproductive. It must therefore be ensured that the introduction of the digital euro does not lead to the ECB competing with the Austrian banks. The protection of personal data and the privacy of citizens is also particularly important. “When considering the digital euro, it must be ensured that cash is protected and preserved,” said Brunner.

The reform of the fiscal rules is also being intensively negotiated at the finance minister level these days. Rules are needed that provide incentives for states to reduce their deficits. Countries with high deficits and high levels of debt in particular must pursue an ambitious and rapid deficit reduction plan. This requires enforceable and clearly defined debt rules that are serious and credible.

Since the beginning of his presidency, Paschal Donohoe has promoted the deepening of the capital union. The aim is to create an internal market for capital and thus improve the framework conditions for the capital market and reduce hurdles, especially bureaucracy. This is intended to make it easier for SMEs in particular to access liquid funds. In particular, the accessibility of investment and venture capital should be improved. Austria is making a strong contribution here and supports the efforts of the President of the Eurogroup. The European Commission is due to present concrete details in March.

Photos:

Questions & Contact:

Federal Ministry of Finance, Press Office
([phone]
[e-mail]

Johannesgasse 5, 1010 Vienna

1702927325
#BrunnerDonohoe #clear #rules #debt #reduction #capital #markets #union