Dombrovskis: high deficits and rising debt call for caution. EU issues warning to Italia over emissions
Brussels states that the ‘nine Member States’, including Germany and Austria, ‘are not making sufficient progress towards achieving their 2030 targets’
‘We are at a crucial stage in fiscal policy: Member States’ deficits remain high and, in some countries that are already heavily indebted, debt continues to rise. At the same time, the widening of interest rate spreads reflects concerns about the fiscal situation in those Member States. An extremely prudent fiscal policy is therefore necessary. Compliance with fiscal rules is imperative to uphold the credibility of our fiscal framework; the 2027 budgets must reflect this commitment to collective responsibility.” This was stated by the European Commissioner for the Economy Valdis Dombrovskis at a press conference following the Eurogroup meeting. “Although this year’s growth figures have been more positive than expected,” he emphasised, “the overall picture remains shrouded in uncertainty. This applies in particular to energy prices, which remain at very high levels and are characterised by high volatility. Next week, on 17 November, I will present the European Commission’s autumn economic forecast. Shortly afterwards, on 24 November, the Commission will publish the autumn European Semester package, which will include an assessment of Member States’ compliance with the EU’s budgetary rules.”
Dombrovskis went on to note that “we welcomed the NATO Secretary-General, Mark Rutte, for an important discussion on defence and defence spending. As regards investment in our defence capabilities, three points are clear: we must spend more, we must spend more wisely, and we must spend together’.
Dombrovskis’s is not the only warning coming from Brussels. The EU Commission will ask Italia and eight other EU countries to submit “a corrective action plan” to speed up the emissions cuts by 2030 in the transport, buildings, agriculture and waste sectors.
This is announced in the annual report on climate action, which estimates that emissions from the sectors covered by the Effort Sharing Regulation will fall by 38.5 per cent by 2030 – less than the EU-wide target of 40 per cent.
Brussels states that the ‘nine Member States’, including Germany and Austria, ‘are not making sufficient progress towards achieving their 2030 targets’.
