“I think it is wrong to discuss an abolition or a softening now because the sustainability of the finances is then called into question,” said Blümel on the sidelines of the informal meeting of EU finance ministers in Slovenian Brdo near Kranj.
The finance minister emphasized that the debt rules have proven in recent years that they are flexible enough and create sustainable prosperity in Europe. Due to the corona crisis, the general debt rules of the EU have been suspended until 2023. From Blümel’s point of view, it is wrong to say that you do not need the rule because you have not adhered to it.
In the morning, Blümel had published an open letter in the media together with finance ministers from Denmark, Latvia, Slovakia, the Czech Republic, Finland, the Netherlands and Sweden, which also called for a rapid return to the Stability and Growth Pact.
“Wrong Access”
From a scientific point of view, Blümel can gain something from the proposal by the Brussels think tank Bruegel to make an exception to the debt limit for green investments. However, he warned that this could become an excuse if the budget cannot be met. “If such proposals are used to be an excuse for some countries, then I think that’s a wrong approach,” he said.
“My concern is that we have to prepare now for the next crisis that will come,” emphasized Blümel, referring to the reform proposals of the EU Commission. The EU had already experienced two global economic crises in ten years. “It was necessary that we as states create fiscal leeway so that we can help and react accordingly. To say now that we have such high debt rates and therefore no longer need any rules is exactly wrong,” emphasized the finance minister.
