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The EC is likely to keep the budgetary rules relaxed for next year

The EC is likely to keep the budgetary rules relaxed for next year. The reason for the EC cork is to help protect companies and jobs.

The EC is likely to keep the budgetary rules relaxed for next year
Yazar: Tom Roberts

Yayınlanma: 3 Mart 2021 22:03

Güncellenme: 19 Kasım 2024 16:03

The EC is likely to keep the budgetary rules relaxed for next year

The European Commission (EC) aims to extend the relaxation of public debt rules by about two years. The reason is to help protect companies and jobs from the effects of the restrictions adopted to stop the spread of coronavirus. The European Commission estimates that in 2020, governments used around 8 percent of gross domestic product to support their economies. Farms are beginning to recover, but the slow distribution of vaccines raises questions about how quickly the situation will improve. EC vice-president Valdis Dombrovskis, "For the time being, the pandemic continues to damage people's livelihoods and the wider economy," said on Wednesday. "The fight against Covid-19 is not won after a year," said EU Economic and Tax Commissioner Paolo Gentiloni. "It is clear that fiscal support will still be needed in 2022," Gentiloni added. At the same time, the EC stated that even in 2023, "all the flexibility of the Stability and Growth Pact will be fully exploited".
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