Svantesson: Ecofin has taken important step towards new economic regulatory framework

On 14 March, EU finance ministers adopted Council conclusions on the ongoing review of the economic governance framework. It was an important step in designing a reformed regulatory framework to deal with economic challenges.

“This is one of the Swedish Presidency’s most prioritised issues to pursue in the Ecofin Council. The fact that we have managed to find convergence of views is crucial and shows that hard work pays off. I’m both proud of and pleased with the outcome“

Elisabeth Svantesson, Minister for Finance

Compared to the current regulatory framework, the Council wants to take a more country-specific approach to debt reduction, subject to common safeguards. In its conclusions, Ecofin proposes that the member states present national fiscal-structural plans over the medium term. The plans will set a national fiscal path, coherent with the Commission’s technical fiscal trajectory. At the same time, the Council wants to keep the existing reference values of member states’ budget deficits and debt ratios, which are 3 and 60 per cent of GDP, respectively.

“It’s no secret that the member states entered this discussion with different perspectives. This is natural when it comes to important issues such as the design of the EU economic governance framework. But I am impressed with the Member States’ efforts to find common ground,” says Ms Svantesson.

In its conclusions, Ecofin calls on the Commission before publishing its legislative proposals, to take into account member states’ converging views and continue to engage with member states in the areas identified for additional discussion. The Council wants the process to be quick with a view to conclude the legislative work in 2023.