All quotes delayed a minimum of 15 minutes. At that time, only expenses above a multi-year average were excluded from the rule, and the amount excluded decreased gradually over 3 years,” the official said. Originally designed in 1997, the EU rules, called the Stability and Growth Pact, put limits on borrowing in the economic union of countries that share the euro currency, but left members sovereign over government debt and deficits. In 2012, the EU introduced a new form of its growth and stability pact. The European Council brings together EU leaders at least four times a year. “But it is too soon to say. “The key is to have a system in place to verify we are actually targeting expenses connected to the coronavirus,” a second official involved in the teleconference said. The Commission is already applying its new interpretation of the Pact's rules, as there is no need to change the existing rules and, therefore, no need for legislative action. This rule gives member states the possibility of covering the short-term costs of implementing reforms which bring long-term benefits, and grants them more time to reach their MTO. Press officers speak 'off the record' about the Council's activities. December 2015: the Council confirmed a commonly agreed position on flexibility within the existing rules of the Stability and Growth Pact. if they are: In addition, the clause would be applied for those member states that have not yet started implementing their reforms, but are already able to provide detailed plans with well-specified measures and credible deadlines for their implementation. The European Commission is expected to submit a review report to the Council on the effectiveness of the matrix before 30 June 2018. EU finance ministers discussed on Wednesday a response to the impact of the epidemic on growth as the European Commission issued a note estimating the outbreak would curb euro zone growth this year below the 1.2% forecast just weeks ago in mid-February, although it was still impossible to say by how much. 2. Overview. The General Secretariat of the Council is a body of staff responsible for assisting the European Council and the Council of the EU. Finally, the ceiling could be abandoned via a general escape clause triggered by independent fiscal institutions and a more autonomous European Commission economic department. We use cookies in order to ensure that you can get the best browsing experience possible on the Council website. These rules would apply to all member states, irrespective whether they are under the preventive or corrective arm of the SGP. During downturns, when growth is below potential, spending would be higher than growth, while during good times, when actual growth exceeds potential, spending anchored at potential would be lower than growth. Our Standards: The Thomson Reuters Trust Principles. These factors cover the implementation of structural reforms. Not to take account of small breaches of the debt reference value - 60% of GDP - if the government is participating in EFSI-related investments. (Reporting by Jan Strupczewski Editing by Alexandra Hudson). This means that member states whose investments can be considered to be equivalent to major structural reforms will be granted a temporary deviation from their MTO or the adjustment path towards it, if: These rules would be applicable to member states that are under the preventive arm of the SGP. Italy got into trouble with the Commission last year because its debt, which at 133% of GDP is the second highest in the EU, has been rising instead of falling as required by EU laws. To avoid reliance on fluctuating annual data, the ceiling for net expenditure growth would be set for three years, after which it would be recalculated. Also known informally as the EU Council, it is where national ministers from each EU country meet to adopt laws and coordinate policies. It helps organise and ensure the coherence of the Council's work and the implementation of its 18-month programme. See here for a complete list of exchanges and delays. There is no limit set in this flexibility clause. The Council endorsed a commonly agreed position on the communication in February 2016, which will be used as the basis for an update of the 'Code of Conduct' - a current interpretation of how the SGP rules should be applied ('Specifications for the implementation of the Stability and Growth Pact') . It will also look into whether the matrix ensured a reduction in government debt at a 'satisfactory pace'. After modifications in 2005, 2011 and 2013, the rules have become so complex that the Commission each year publishes an almost 100-page handbook to explain how they work, along with many exemptions and exceptions. “From talks today it has, however, emerged that governments agree that the process of reviewing fiscal rules should proceed,” he said. “It is not clear how this would work this time, it would surely need to be linked with investment in policy priorities,” the third official said. The choice of individual government responses rather than an pan-EU one was, for now, more convenient to speed things up. To get more information about these cookies, how and why we use them and how you can change your settings, check our cookies policy page. When assessing the situation in a country that is subject to the excessive deficit procedure (the corrective arm of the Pact), the Commission will distinguish, as far as possible, budgetary developments that are under government's control from those linked to an unexpected decline in economic activity. Under the EFB proposal countries that have debt above 60% would have to keep net government primary spending, which is expenditure less interest payments on public debt, at or below the rate of the economy’s potential GDP growth, which is the rate of growth that does not trigger higher inflation. At least four times a year situation of each member state primary expenditure rule would automatically economies! Favor of simplifying the rules will take a long time Council meetings a.! Boost performance and guarantee security of the EU investments by taking into account specific! Below the rate of potential growth reforms meet a set of criteria, i.e years... 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