Economy Commissioner Paolo Gentiloni has welcomed the “unanimous” agreement reached between EU finance ministers on the revision of the EU’s fiscal rules, pointing out that the texts of the agreement, although more complex, retain the basic elements of of the Commission’s original proposal.

“As in any negotiation, the texts agreed today they reflect a compromise between different positions. This is normal. While the negotiations have added some complexity to the texts compared to our proposal, they maintain its basic elements”, emphasizes P. Gentiloni, in a statement. These elements that are retained are medium-term fiscal planning for each country separately, greater ownership of fiscal plans by member states, and the possibility of a gradual fiscal adjustment that takes into account investment and reform commitments.

P. Gentiloni reminds that the work on the revision of the Stability and Growth Pact has not yet been completed. In January, the negotiations will move to the next phase, that of “tripartite” negotiations between the Council of the EU, the European Parliament and the Commission. “I am confident that the same spirit of constructive compromise that led us to today’s successful outcome will lead us to a positive conclusion to the final steps of this process – and to the entry into force of this crucial reform in the spring of 2024,” emphasizes the Economy Commissioner.

The agreement between EU member states will have to be negotiated with the European Parliament before the end of the legislative period in April 2024 for the new rules to come into force in 2024.