New budget rules agreement in Europe

The European Union (EU) has reached a new agreement on budget rules that aims to provide member states with a more tailored approach to reducing their debt ratio, according to the Belgian EU presidency. The revision of the EU’s fiscal rules is intended to address concerns raised by critics that the previous rules were too complex and strict.

Under the new rules, countries that record a larger deficit than the 3 percent rule will have to make an annual effort of 0.5 percentage points. The requirements will be higher for countries with a higher debt burden. This adjustment is expected to provide greater flexibility for member states while still ensuring that they remain within the EU’s overall debt limit of 60 percent of GDP.

The European Parliament and the 27 EU member states still need to formally approve the new budget rules before they can take effect. If approved, these changes will represent a significant shift in how the EU manages its finances and could have far-reaching implications for member states and their economies.

By Editor

Leave a Reply