“Today’s proposals aim to bring about a more gradual but steadier reduction in debt levels and to boost sustainable and inclusive growth through investment and reforms”, said Commissioner for the Economy, Paolo Gentiloni, as he presented the new rules for economic governance and public debt in the EU, the so-called new Stability and Growth Pact. “We have reached this point having debated extensively and consulted widely”. We now need to create a consensus between Member States and the European Parliament to rediscover the unity of purpose that has helped Europe overcome the immense challenges of the last three years. “We are convinced that this new framework will support both stability and growth for the European Union in the years ahead”, Gentiloni remarked. According to the Commission, the new rules will facilitate reforms and investment and will help to reduce high government debt ratios in a sustainable, “gradual and realistic” way.
National medium-term fiscal structural plans “are the cornerstone of the Commission’s proposed framework”. Member States will draw up and submit their plans setting out their fiscal targets, the measures to address macroeconomic imbalances, and priority reforms and investment for a period of at least four years. These plans will be assessed by the Commission and approved by the Council. Member States will submit annual progress reports on the implementation “to facilitate effective monitoring and ensure transparency”.