Germany backed a set of joint conclusions among European Union finance ministers on an ongoing review of the bloc’s fiscal rules after it secured last-minute changes to guarantee a greater say for member states.
(Bloomberg) — Germany backed a set of joint conclusions among European Union finance ministers on an ongoing review of the bloc’s fiscal rules after it secured last-minute changes to guarantee a greater say for member states.
The country’s finance ministry, led by Christian Lindner, made surprise proposals on the eve of a meeting of EU counterparts in Brussels on Tuesday, when countries had expected to sign off on a draft text agreed two weeks ago on progress to reform the Stability and Growth Pact.
The German minister told reporters a considerable number of member states were concerned their individual situations and views weren’t being sufficiently taken into account as the European Commission readies legislative proposals.
This meant it was necessary to change the draft council conclusions to ensure the EU’s executive arm doesn’t have a carte blanche and that there are further deep, technical discussions on unresolved issues.
“The train can only leave the station when its destination is clear,” Lindner said. “That’s today’s message: A great desire for consensus, large agreement about lasting, sustainable public finances, but still some work to do before we can formally begin the next steps.”
Lindner’s last-minute move follows a series of disruptive interventions by the ruling coalition in Berlin in recent months that have upset EU partners on issues ranging from decarbonizing the car industry to financial support for Ukraine as the bloc faces a growing list of challenges that include the fallout from the collapse of Silicon Valley Bank.
Read more: Germany Is Becoming a Roadblock for More and More EU Business
While Germany sought more consultation, Spanish Economy Minister Nadia Calvino pushed additionally for a more ambitious timetable that would see the legislative process wrapped up by the end of this year, according to a senior EU diplomat.
Economy Commissioner Paolo Gentiloni told reporters there is a clear commitment to achieve this.
Restoring Finances
He added that the commission is fully aware that several aspects of the reform still need to be discussed and clarified.
French Finance Minister Bruno Le Maire said the conclusions of Tuesday’s meeting are good news and should pave the way for legislative proposals in the coming weeks.
“Europe needs new budgetary rules: Rules that combine the need to restore public finances and the possibility of investing to meet the challenges of the 21st century,” he said in a statement.
–With assistance from William Horobin and Katharina Rosskopf.
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