(ANSA) - BRUSSELS, APRIL 26 - The EU Stability Pact reform proposal provides for safeguard measures on debt sustainability.
The reference values of 3% and 60% of GDP for the deficit and debt remain unchanged.
At the end of the spending plan agreed by each state for the medium term (4 years), the public debt-to-GDP ratio will have to be lower.
A minimum budget adjustment of 0.5% of GDP per year is then envisaged as long as the deficit remains above 3%.
The 0.5% adjustment 'safeguard' will be independent of the launch of an excessive deficit procedure.
The EU Commission thus lifts the veil on the proposed reform of economic governance.
States will indicate medium-term objectives (4 years) on how they intend to address macroeconomic imbalances and reforms, indicating only an expenditure indicator.
These plans, which can be extended by 3 years, will be evaluated by the Commission and approved by the Council.
States with deficits over 3% of GDP or debts over 60% of GDP will have to ensure that the debt has a plausible or remains prudent plan and that the deficit falls or is below 3% in the medium term: the executive he speaks of it as a "technical trajectory".
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