Fiscal Policy
German coalition needs ‘painful’ compromises as it misses first 2025 budget deadline
Est. 3minGermany’s three-party government coalition did not manage to reach an internal deal on the 2025 draft budget by Wednesday (3 July), which had previously been named as the deadline for an internal agreement, as differences over potential spending cuts prove difficult to bridge.
French markets wobble as EU Commission launches deficit procedure
Est. 6minFrance's financial markets lost further ground on Wednesday (19 June) after the European Commission announced it intends to open an excessive deficit procedure (EDP) over the national budget, exacerbating fears that the ongoing political reshuffling may compound the country's economic headwinds.
Reform of EU cohesion policy inevitable, German official says
Est. 5minBefore talking about a new round of joint EU debt, the EU would need to reform its current spending priorities, including regional development and agricultural support, Ole Funke, coordinator for EU fiscal policy at the German Chancellery said.
As transport electrifies, governments can still make up for lost fuel duty revenues
Est. 5minLoss of fuel duty could cost governments billions in tax revenues. William Todts, executive director at T&E, explains why, even as an environmentalist, we should be taxing electric cars
German liberals slam von der Leyen for not ruling out new EU debt
Est. 3minPoliticians from the liberal FDP (Renew), part of Germany's three-party ruling coalition, have criticised European Commission President Ursula von der Leyen for not ruling out a new debt-financed EU investment programme.
Energy taxation directive: No progress expected before EU elections
Est. 5minDespite the presentation of a new compromise text to national governments on Thursday (April 25), no serious progress is expected on the revision of the energy taxation directive before the next term of the EU Parliament and Commission.
New EU debt? Conservative think-tank warns of NextGen ‘design flaws’
Est. 6minIn the debate about a follow-up programme after the end of the EU’s Recovery and Resilience Facility (RRF), a think-tank close to centre-right EPP has criticised “significant flaws” in the current programme, including the lack of a plan for repaying the joint EU debt.
FDP Lindner defends Germany’s debt ceiling as ‘inflation brake’
Est. 5minGermany’s Finance Minister Christian Lindner has defended the country’s constitutional ‘debt brake’ against criticism from his coalition partners after a ruling by the constitutional court last year aggravated the government’s budgetary constraints.
€600m Italy recovery fund fraud likely to be repeated, EU audit chief warns
Est. 5minThe head of the EU’s auditing body warned that there is “absolutely” a risk that recent news of the alleged embezzlement of hundreds of millions of euros from the bloc’s pandemic recovery fund could reoccur in future.
Recovery fund should be ‘blueprint’ for permanent joint borrowing, EU Commission economy chief says
Est. 5minGiven the continued investment needs into the green and digital transition, there was a need for a “permanent” EU-level fund, EU Economy Commissioner Paolo Gentiloni said at an event on Tuesday (9 April), highlighting that the “temporary nature” of the EU’s Recovery and Resilience Facility (RRF) has prevented it from unleashing its full potential.
Debt or no debt? German coalition parties drift further apart
Est. 5minGermany's Finance Minister Christian Lindner took aim at his coalition partners' stance on the country's debt brake rules on Wednesday (13 March), underscoring the widening divide between the country's three ruling parties.
NextGen 2.N0? Conservatives throw spanner into new EU joint borrowing debate
Est. 7minCentre-right and national-conservative groups in the European Parliament have voiced strong opposition to a renewed joint-debt programme at the EU level, after calls for a Recovery and Resilience Facility (RRF) ‘2.0’ mushroomed over the last few weeks to close a gap for public investments.
LEAK: The Belgian Presidency’s plan to unblock the EU’s energy taxation directive
Est. 3minEuractiv got hold of the Belgian Presidency's plan to unblock the EU Energy Taxation Directive, which is currently stuck because of the unanimity rule applying to tax matters. Wood for heating and charcoal will be exempted from the scope under the proposal.
Europe cuts 2024 growth outlook, ECB’s Lagarde calls for revamp of German model
Est. 4minThe European Commission cut its growth outlook for both Europe and the eurozone on Thursday (15 February), revising it down from its autumn projection amid persistent geopolitical headwinds and stubborn economic headaches in Germany.
New EU fiscal reforms will impede critical investments, experts warn
Est. 6minThe much-delayed reform of the EU’s fiscal rules agreed between the European Parliament and Council over the weekend will hamper the bloc’s ability to make critical investments in green technology and Europe’s defence industry, experts interviewed by Euractiv said.
EU’s new fiscal rules impede fight against climate change: report
Est. 5minGreens/EFA co-president Philippe Lamberts noted that the new EU fiscal rules will prevent the bloc from investing the estimated €260 billion extra per year required to reach its net zero target by 2050.
EU should ‘cut red tape’ to halt industrial slump, Belgian FM says
Est. 5minBelgian finance minister Vincent Van Peteghem has said that developing an 'Industrial Deal' will be one of the key priorities of his country’s EU Council presidency, adding that “cutting red tape” and improving the bloc’s general investment climate are key to arresting the bloc’s industrial decline.
‘Austerity will return’
Est. 9minAfter a process of almost 4 years, the negotiations on the reform of the EU’s fiscal rules have entered the very last phase: Trilogues ahead! Time is pressing, so let’s have a look at what is still open to change.
European Parliament stifles Green revolt against new EU debt rules
Est. 5minWith an overwhelming majority, the European Parliament adopted its negotiating position for the EU rules on national debts and deficits, despite Green fears that it could lead to renewed austerity and destabilise the European Union.
Greens chief warns new debt rules will strengthen EU far right, Putin
Est. 5minAhead of a vote in the European Parliament on new debt rules for EU countries, the Greens co-president Philippe Lamberts warned against the “end of the European Union as we know it” in a worst-case scenario where renewed austerity gives rise to populists and too little military spending lets Putin win the war in Ukraine.
After Karlsruhe: Germany’s economic security agenda on the brink
Est. 5minThe ruling from the German constitutional court in Karlsruhe, declaring the transfer of 60 billion Euros in Covid-related debt to the Klima- und Transformationsfond (KTF) unlawful, has cast a shadow of uncertainty over Germany's economic security agenda, argues Tobias Gehrke.
Explainer: The complex fiscal rules that EU finance ministers just agreed to
Est. 6minAfter months of negotiations, the finance ministers of EU countries on Wednesday (20 December) agreed on a new set of rules to govern member state finances.
German Socialist politician warns against failed EU debt rule talks
Est. 5minMuch is at stake in the reform of EU debt rules, which could also threaten the very existence of the euro, Social Democrat MEP Joachim Schuster told Euractiv in an interview.
Germany solves budget spat by cutting climate fund and increasing energy taxes
Est. 5minThe German government has resolved its internal disagreements on how to deal with a €60 billion hole left in the government’s finances after a ruling by the country’s constitutional court, announcing a mix of expenditure cuts and additional sources of income.