The European Commission on Thursday unveiled measures to simplify how member states comply with the EU’s fiscal framework, widening its red tape-cutting push from the private to the public sector.
The new policies would “streamline” the EU executive’s oversight of member states’ adherence to the bloc’s fiscal framework, which was updated last year and mandate strict deficit and debt thresholds of 3% and 60% of annual GDP, respectively.
The package would also calibrate Brussels’ special procedure of “enhanced surveillance” to the severity of a country’s financial distress and lower the maximum initial fine for fiscal violations from 0.05% to 0.02% of GDP.
“By removing outdated requirements and reducing administrative complexity, the EU can support member states in focusing resources where they are most needed: on delivering sound public finances, fostering growth and ensuring financial stability,” Economy Commissioner Valdis Dombrovskis said in a statement.
Nine EU capitals, including France, Italy and Poland, are currently subject to an “excessive deficit procedure” for exceeding the bloc’s 3% threshold.
The move comes amid a broader push to slash red tape by Brussels. So far this year the EU executive has proposed six Omnibus packages, which seek to reduce companies’ reporting requirements from defence to corporate sustainability. Four more packages are expected by the end of this year.
A senior Commission official stressed that many of the fiscal proposals are “technical”, but also form part of the broader simplification agenda. “We are in simplification times, for good reasons,” they said, adding that Denmark’s EU presidency is “very keen” to push the file forward.
Approval by EU governments and the European Parliament will still be required, but officials are “optimistic that this could be closed in a relatively short time”.
(cs)
