“Maintaining sound public finances must remain at the heart of the Stability and Growth Pact” – Yuriko Backes at Eurogroup and Ecofin meetings in Brussels

During the meeting of the Eurogroup held in an inclusive format, the 27 finance ministers first discussed the macroeconomic perspective, which remains difficult and uncertain in the current context. They also discussed the European Commission’s proposal to better coordinate responses to rising energy prices by inviting member states to target different energy price curbs to the most vulnerable to limit budget costs and protect incentives. reduction of energy consumption.

Yuriko Backes said in this context: “The future development of the European economy will depend very seriously on our response to the many challenges that lie ahead. I generally welcome coordination efforts at the European level, including a better consideration of the consequences of state support in the end. I welcome the national circumstances in each country. in relation to public finances, while maintaining the necessary flexibility to respond.

The Eurogroup, in its usual composition in the format of the Eurozone, then examined the budget plans of the Member States based on the relevant opinions of the European Commission. The latter also provided an update on post-programme monitoring for the five Member States that received financial assistance after the financial crisis, namely Cyprus, Spain, Portugal, Ireland and Greece. Ministers also proceeded with the election of Paschal Donohoe, Ireland’s finance minister, to a new term of 2.5 years as president.

Regarding the Ecofin Council, the agenda was changed after the Czech Presidency observed the approval of the directive on the implementation of texts on financial assistance to Ukraine, except for the regulation requiring only a qualified majority. the minimum taxation of multinational companies (pillar 2 of the OECD agreement) will not meet the necessary unanimity due to Hungary’s veto. The Council also agreed to devote more time to analyzing the European Commission’s assessment of respect for the rule of law in Hungary, as well as the Commission’s opinion on Hungary’s recovery plan and sustainability.

In this regard, Minister Yuriko Backes notes that “The responsibility of the Council in this matter should not be taken lightly. The rule of law is the guarantor of the basic rights of our citizens and is at the center of values. Our Union was founded. The reliability of our control tools is also at risk.”

The Council of Ecofin also for the first time examined the directions of the European Commission on the reform of the European economic management, especially the rules of the Stability and Growth Pact. Welcoming the start of discussions, many Member States expressed their reservations about such a major restructuring and were concerned about the resulting risks for the consistent application of the relevant rules and the equal treatment of Member States. Yuriko Backes noted in her speech that it is important to “know the intricacies of the paths forwarded for member states” and that “a return to sustainable levels of public debt, as well as the maintenance of sound public finances, must still be pursued.” is the heart of the reformed Stability and Growth Pact”.

The discussion on the draft revision of the energy taxation directive allowed highlighting the economic, social and also environmental sensitivities of the various Member States. As the last meeting of the Ecofin Council for the second half of the year, it was finally an opportunity to discuss the progress made during the Czech chairmanship.

Within the Eurogroup and Ecofin meetings, Minister Yuriko Backes met with Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union of the European Commission. He also met with Italian Minister of Economy and Finance Giancarlo Giorgetti. The rider amending the double taxation agreement between Luxembourg and Romania was also signed by Attila György, Secretary of State for Finance of Romania.

The Governing Council of the European Stability Mechanism (ESM) met before the Eurogroup for the first time since the appointment of Pierre Gramegna as director general.

Information was provided by the Ministry of Finance