Saatja: "Office of the Secretary General" <
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Saaja: "RAM Info"
Teema: Ongoing trilogues about the reform of the EU economic governance
Kuupäev: 2024-01-26 10:22
Dear Mr Võrklaev,
It is my honour to share with you a letter on behalf of the Fiscal Matters
<https://www.fiscalmatters.eu/> coalition, representing tens of millions of
citizens across the European Union.
We are concerned that the proposals currently on the table will lead to a
reduction in living standards, in particular for the least well-off, and
forbid Member States to invest in a resilient future. Revised rules leading
to such outcomes seem particularly ill-advised in the current geostrategic,
political, economic and social context.
We stand at your disposal to support an optimal outcome to the trilogue from
a public interest perspective.
Sent with kind regards on behalf of
Benoît Lallemand
Secretary General
Finance Watch
<http://www.finance-watch.org/> www.finance-watch.org
Tel. +32 2 880 04 30
<mailto:
[email protected]>
[email protected]
To the President of the ECOFIN Council, Mr. Vincent Van Peteghem
To the President of the Eurogroup, Mr. Pascal Donohoe
To the EU Ministers of Economy and Finance
To Vice-president Vladis Dombrovskis and Commissioner Paolo Gentiloni
Copy : Irene Tinagli, Esther De Lange, Margarida Marques, Billy Kelleher, José Gusmão and
Philippe Lamberts
Re: Ongoing trilogues about the reform of the EU economic governance
Dear Ministers,
As trilogues on the reform of the EU economic governance are underway, we urge you to
ensure that the negotiations result in a text that ensures all governments are able to sufficiently
invest to achieve agreed EU priorities, including delivering a socially just green
transition. Significant cuts in public spending would leave our economies and societies
unprepared to face a mounting climate crisis, rising geopolitical tensions, inequality and
deindustrialisation.
In particular, we urge you to make sure that the outcome of the trilogues translates as a
minimum in:
● Removing the proposed “deficit resilience safeguard” entirely, as it would bring back
unsubstantiated and harmful ‘all-size-fits none’ fiscal consolidation;
● Removing the “debt sustainability safeguard” so that the debt/GDP ratio should be set
on a declining trend by the end of the adjustment period, without prescribing a uniform
binding debt reduction;
● A commitment to revise the Debt Sustainability Analysis methodology in a way that
ensures realistic adjustment paths that avoid a return to austerity and enable the
necessary fiscal space for investments in common EU priorities; for the sake of
transparency and democratic scrutiny the methodology should be revised by way of a
delegated act;
● Introducing the Do No Significant Harm to climate and environment (DNSH) principle in
the preventive arm to strengthen the quality of public spending;
● Protecting investments for common EU priorities, making clear that expenditure for
investments, including just transition measures, will not lead to an excessive deficit
procedure in the framework of the Stability and Growth Pact. The Parliament’s proposal
to exclude co-financing of EU programs up to 0,25% of GDP is positive in that regard, but
not sufficient;
● Preserving the positive elements in the Parliament’s position such as common EU
priorities brought from the annex to the body of the text, carving out a small exemption
for investments linked to EU funds, the inclusion of the social convergence framework,
an obligation to report on investment gaps, requirements for regular and meaningful
stakeholder involvement, and strengthening the role of national fiscal institutions.
A socially just green transition cannot happen without an ambitious financing strategy.
Unnecessary cuts to public budgets, reducing the offer and quality of public services, in the
middle of a cost-of-living crisis undermine the foundations and resilience of our economies and
societies, breeding distrust in politics. The reform of the EU fiscal rules has to be a cornerstone
of such a strategy, with rules fit for the next crucial decade. New EU fiscal capacity and a
common taxation agenda will have to be part of such a strategy as a way to enable economic
development while targeting fiscal sustainability.
Thank you for your attention.
Yours Sincerely,
Chiara Martinelli, Climate Action Network (CAN)
Europe
Luca Bergamaschi, Director Co-Founder, ECCO
Think Tank
Juliana Wahlgren, Director, European Anti-Poverty
Network
Patrizia Heidegger, Deputy Secretary General,
European Environmental Bureau
Ludovic Voet, Confederal Secretary, European
Trade Union Confederation
Daniele Taurino, Board Member, European Youth
Forum
Benoît Lallemand, Secretary General, Finance
Watch
Michael Vincent, Greentervention
Danny Sriskandarajah, Chief Executive Officer, New
Economics Foundation
Laura de Bonfils, Secretary-General, Social
Platform