Ecofin’s debate on the suspension of the stability Pact

23 march 2020All’Ecofin “we will discuss the activation of the clause” that suspends the pact “that the commission proposed on Friday. I am confident that the Council will support. This tool will give the national authorities the flexibility to direct their spending where it is needed most” is how the vice-president of the Eu commission responsible for the euro, Valdis Dombrovskis.

Today’s meeting, video conference, should give the go-ahead for the activation of a ‘general escape clause’, general safeguard clause, of the stability pact, which allows a temporary deviation from the adjustment path towards the Mto, the medium-term objective.

The Ecofin could be followed, it is learned from sources in diplomatic europe, a meeting of the Eurogroup in size small already tonight, before a format inclusive agenda for tomorrow evening.

The 27 finance ministers will discuss also the way in which the Commission will carry out assessments and analyses on public budgets and economic policies during the ‘half’ of european surveillance. The essential thing is that at this stage there will be no limit to public deficit and debt view the
emergency situation. It is not a case, in fact, that the stop on the budget rules, was decided after the Ecb has extended its safety net to provide liquidity to banks and companies, but also to be ready to support the debt markets, thus avoiding performers financial that would put at risk the stability of the Eurozone.

It also discusses Mes
The Eurogroup, “he asked to the European Stability Mechanism and the Commission to explore ways, within their respective mandates, to deal with the consequences” of the pandemic Covid-19.

“The discussion on the type of instrument of the Esm that could be used and on the relevant type of conditionality is in progress and the Eurogroup of tomorrow will provide an opportunity to discuss these issues”. This is confirmed by the spokesman of the European Commission for economic and financial affairs Marta Wieczorek, during the press briefing in Brussels.