• Fri. Mar 1st, 2024

New EU Budget Rules Aim for More Personalized Approach to Managing Debt Levels

ByEditor

Feb 11, 2024
New budget rules agreement in Europe

The European Union (EU) has reached a new agreement on budget rules, announced by the Belgian EU presidency. This revision aims to provide EU countries with a more personalized approach to managing their debt levels.

The current rule in the EU states that the maximum debt ratio should not exceed 60%, and the GDP deficit should not surpass 3%. However, critics argue that these rules are too complicated and strict, leading to months of negotiations among the member states.

Under this new agreement, countries that exceed the 3% deficit limit will have to make an annual effort of 0.5 percentage points to reduce their deficits. The requirements will be stricter for countries with higher debt burdens.

The European Parliament and the 27 member states still need to formally approve the agreement before it can take effect.

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