“It is important that member states seriously envisage additional budgetary measures to ensure a strong recovery at national and global level,” said Jelen, who is in Brussels at a meeting with EU finance ministers, the so-called Eurogroup.
In the text of the speech shared with the media, she spoke about a sufficiently flexible European budget framework that would enable countries to react strongly to crises and to invest in sustainable infrastructure, research, development and technology.
EU finance ministers should discuss the direction of the Union’s economic policy today, and they invited Jelen to exchange opinions on that topic.
Ministers should also discuss budgetary policies within the EU.
They anticipate launching a debate in the fall on reform of the Stability Pact, which limits member states’ public deficits to three percent of their gross domestic product (GDP) and borrowing to 60 percent of GDP.
Some countries assess that some of the rules are outdated and see them as a threat to economic recovery.
Too fast a return to a strict fiscal policy has accelerated Europe’s fall into recession again after the 2008 financial crisis. Officials are worried that the same mistake will not happen again.
“The budget framework should support the economy of the future,” Jelen said, and previously welcomed the measures against the crisis that the EU adopted last year.
“In the European Union, the budget response to the crisis was decisive and unprecedented, both at the level of member states and at the level of the EU. The European Central Bank reacted quickly and vigorously by adopting measures that enabled the preservation of favorable financial conditions,” Jelen said. warned of the risks associated with the continued duration of the coronavirus pandemic.
“I think we all agree that the uncertainty is high. In that context, it is important that the budget orientation is favorable by 2022,” she said.