Germany opposes new European fiscal rules. Berlin thinks the proposed rules are too vague. Last week, the European Commission presented a proposal to apply the rules of the Stability and Growth Pact a little more flexibly, and this goes against the wishes of the Germans. “They think there are too few targets to reduce the national debt,” says Europe correspondent Stefan de Vries.
The countries of northwestern Europe, in particular, fear having to pay for the budget deficits of the more southern member states. According to De Vries, these rules were introduced in 1997 for a stable euro, but they have never really been applied correctly. “Many countries have violated it, Germany, France, Italy, but also the Netherlands on a regular basis and nobody has ever been punished for it,” says De Vries.
Since the corona crisis, however, it has become clear that such rules have to be formulated or applied differently, because they don’t work in practice. Last week, the European Commission advocated a more individual approach, rather than one one sizebut Germany claims to treat all countries equally, otherwise a uniform European economy will not get off the ground.
Pragmatism
It should be noted that a more pragmatic approach to the budgetary problem is needed because the economies of the European Union are still too diverse to apply a clear rule. “Germany takes a very formal position, the country wants clear rules with numerical references and benchmarks,” says De Vries. German Finance Minister Christian Lindner believes that fiscal rules should form the basis for economic stability and growth. “The Germans adopt a very formal attitude, while in reality a pragmatic approach is needed here.”
“Germany is hypocritical and hasn’t followed the rules for years”
According to De Vries, the German attitude will lead to many discussions on the new proposals of the European Commission. But that something has to be done, all member states agree. De Vries defines it as a battle between the flexible and the precise, but adds that the Germans also have butter on their heads, ‘because that country hasn’t respected the rules for years, and hasn’t been punished for that either’.
‘We have to hurry, because the European elections are exactly one year away. Most countries still want these new fiscal measures or at least the reform of the Stability and Growth Pact to be organized in May or June next year.’
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
