On December 20, EU finance ministers will convene an unusual meeting via video link in a final attempt to reach a consensus on changing spending regulations.
The European Union aims to give governments more flexibility and room to spend by overhauling its budgetary regulations, which are viewed as being overly strict by many capitals.
According to a diplomat from Spain, which is now holding the rotating EU chair, the meeting was “scheduled for December 20”.
The old regulations, known as the Stability and Growth Pact, which were suspended during the coronavirus pandemic, will reappear on January 1, 2024, if ministers cannot reach an agreement by the end of the year.
The change has caused division in the bloc, and despite a working dinner that continued into the early hours of the next day, ministers were unable to come to an agreement last week.
States are required by the present regulations to maintain debt levels below 60% of GDP and deficit levels below 3% of GDP.
Limits on deficit reduction have recently caused friction between France and Germany.
Berlin says there must be “safeguards” to ensure that member states reduce excessive deficits annually, while Paris wants to give wiggle room to encourage countries to invest in key areas for the EU, such as the green and digital transitions.
