The new budget rules give member states more time to reduce their deficit and debt. They will have more room to invest in, for example, greening and digitalization. But the rules must be enforced this time, unlike before.
The compromise reconciles strict accountants such as the Netherlands and Germany and more flexible accountants, especially from Southern Europe, after years of negotiations. With their often significant red figures and high debts, the latter member states feared that they would have to make drastic adjustments and would have nothing left to invest in the economy of the future.
The finance ministers of the EU countries found each other so difficult that hardly anyone in the European Parliament dared to jeopardize their shaky unity. Despite an opposition vote from, among others, the MEPs from GroenLinks and PvdA, the lion’s share of the Social Democrats, just like the Christian Democrats and Liberals, agreed on Tuesday.
The EU member states will give their final agreement on Monday. The rules will then apply to the new 2025 budget.
