FinMin Caciu: National commitment is an essential element of an effective economic governance framework.
National commitment is an essential element of an effective economic governance framework, and the shift to multiannual fiscal planning has many benefits, Finance Minister Adrian Caciu believes, told Agerpres.
"In agreement with the European Commission's proposals, I believe that national commitment. is an essential element of an effective economic governance framework, and the shift to multiannual fiscal planning has many benefits. It is necessary to take into account member states' initial standpoints and fiscal prospects, as well as economic characteristics in establishing differentiated fiscal paths. Simplification of the framework, as well as maintaining its multilateral character under conditions of equal treatment, transparency and predictability are important. I believe it essential to ensure that the fiscal adjustment period can be extended if a member state commits to an eligible set of reforms and investments which improve growth prospects or resilience, strengthen public finances and, therefore, their long-term sustainability, or tackles the EU's strategic priorities, including the challenges regarding public investment for the green and digital transition and the development of defence capabilities," the Finance minister told AGERPRES in respect to the European Commission's proposals to amend public debt regulations.
Adrian Caciu believes that this approach linked to the extension of the fiscal adjustment period will generate a higher level of flexibility in view of adapting the implementation period of the plan to the national administrative capacity and specific circumstances.
Moreover, according to the Finance minister, the package should offer a balance between sustainability (solidity of public finances) and inclusive and sustainable economic growth (reform and investment needs).
"It is necessary that this new Framework creates sufficient conditions to stimulate investment in member states with economic difficulties or with a weak fiscal space. In the current geopolitical context, I believe that defence expenditure should be taken into account as a relevant factor in all stages of the Excessive Deficit Procedure/EDP (launch, evaluation, implementation of actions, deactivation)," Adrian Caciu stated.
The European Commission (EC) has proposed a reform of EU fiscal regulations, according to which governments must ensure that the public debt falls over a four-year period and remains on a downward trajectory for a decade without further measures.
The EC proposal will be discussed by EU governments and negotiated with the European Parliament, with the aim of reaching an agreement in 2023.
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