That means national governments can pump into the economy as much as they need. We are relaxing the budgetary rules to enable them to do that.
On March 20, 2020, the Commission proposes the activation of the general escape clause of the Stability and Growth Pact (SGP) as part of its strategy to respond quickly, forcefully and in a coordinated manner to the coronavirus pandemic. Once endorsed by the Council, it will allow Member States to undertake measures to deal adequately with the crisis, while departing from the budgetary requirements that would normally apply under the European fiscal framework.
The proposal represents an important step in fulfilling the Commission’s commitment to use all economic policy tools at its disposal to support Member States’ in protecting their citizens and mitigating the pandemic’s severely negative socio-economic consequences.
Source European Commission
Latest Posts in "European Union"
- Comments on ECJ C-535/24 (Svilosa) – VAT Deduction on Recovery Actions Not Considered Taxable Service
- CJEU Case C-726/23: Arcomet Towercranes Decision Clarifies Intra-Group VAT and Transfer Pricing Rules
- EU and Morocco reach agreement to extend preferential tariff treatment to Western Sahara
- Comments on ECJ C-436/24 (Lyko) – Loyalty programs and VAT: AG’s opinion in Lyko case brings new perspectives
- EU States Move Early on €2 Customs Fee
