Correspondent in Berlin and Brussels
The return to budgetary discipline in Europe will take much longer than expected.
The Stability and Growth Pact, which notably limits the level of deficits to 3% of GDP, had been suspended until 2021. The European Commission announced on Wednesday that it wished to extend this suspension until the end of 2022.
“The battle against Covid-19 has not yet been won,
the Italian economy commissioner admitted.
And it also continues to weigh on our economy and our society
.
"
In this context, Brussels considers it premature - and very detrimental to the economies of the block - encouraging too fast on Member States to reduce measures to support their economies.
"Our message is that budget support must continue as long as necessary"
, underlined the Executive Vice-President of the Commission, Valdis Dombrovskis, who is known to be in favor of a certain budgetary discipline.
To read also:
Deficit, debt: will the European totem of budgetary austerity be brought down by the crisis?
The formal decision
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