EU's Gentiloni targets individual debt limits for states under reform plan
Reuters
Published Dec 29, 2021 08:13
BERLIN (Reuters) - The European Union's Economy Commissioner wants to set debt limits on an individual basis for member states under a proposed reform of the EU Stability Pact that he aims to present around mid-2022, he told daily Frankfurter Allgemeine Zeitung.
Paolo Gentiloni called in November for a debate on reforming EU debt rules in view of the economic strains caused by the coronavirus crisis.
"We cannot lump all countries together. The differences in the (current) debt ratios are too high for that," Gentiloni was quoted by the newspaper as saying on Wednesday.
State support and investment programmes to counter the economic impact of COVID-19 have sent many EU states' debt levels soaring beyond the Stability Pact's current 60% of gross domestic product limit.
Gentiloni said his reform would set individual debt goals for each country, adding that the Commission should be given more effective instruments to enforce budget rules.
He rejected a proposal by Klaus Regling, the head of the euro zone bailout fund, to raise the debt limit to 100% of GDP for all states.
"That just doesn't correspond to my idea of a differentiated view of the states," he told the FAZ.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.