European Commission and ECB, the choice of rigor

2023-05-27 07:00:00

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CHRONIC. Their decision will have consequences on Europe’s ability to finance energy transition, industrial relocations or education and health spending.

By Patrick Artus

The choice of rigor observed by the European Commission and the European Central Bank will have consequences on Europe’s ability to finance the energy transition. Here, wind turbines in Flavin (Aveyron), April 7, 2023.
© Charly Triballeau/AFP

Published on 05/27/2023 at 09:00

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Lhe European Commission presented, in April, its plan to reform the Stability and Growth Pact. Even if some flexibilities have been introduced compared to the previous Stability and Growth Pact, this Commission proposal shows a return to a clear form of budgetary rigor.

The reform proposals include new flexibilities: taking into account public expenditure on energy transition or investments in digital technology or even defense – however without excluding these expenditures from the calculation of the public deficit and the public debt –, specific nature to each country of the stability programs submitted to the Commission.

Financial penalties

But these flexibilities do not prevent the general framework of the new stabi…

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