EU Countries Suspend Budget Rules

EU Countries Suspend Budget Rules

European Union (EU) member states have decided to suspend rules that limit public spending, as the new type of coronavirus (Covid-19) is increasingly increasing the severity of the outbreak. The finance ministers of 27 EU member states held an Economic and Financial Affairs Council (ECOFIN) meeting with an online connection due to the coronavirus outbreak. Following the meeting, some measures were taken due to the economic effects of the coronavirus, and it was reported that the member states have decided to enforce the withdrawal clause in the EU Stability and Growth Pact. The Stability and Growth Pact contains strict rules that limit public spending and budget deficits of EU member states. According to EU rules, it is required that the budget deficits of member countries be 3 percent of GDP and public debts should be below 60 percent of GDP.