Early on Saturday, the European Parliament and the member states came to an agreement on the revision of EU fiscal regulations, which aims to increase investment while controlling spending.
Following the overnight negotiations, the EU Council Presidency led by Belgium declared on social media site X, “Deal!” The 27 nations and MEPs will still need to formally ratify it.
The text modernises the current rules, known as the Stability and Growth Pact, created in the late 1990s, which limit countries’ debt to 60 percent of gross domestic product and public deficits to three percent.
“Deal!,” the Belgian presidency of the Council of the EU said on social media platform X, formerly Twitter, after 16 hours of talks.
“I welcome the political agreement on our ambitious reform of the EU’s economic governance,” EU chief Ursula von der Leyen said.
“The new rules will enable EU countries to invest in their strengths while consolidating their public finances. This is our common growth path,” she added.
The European Union spent two years making an intensive effort to develop reforms supported by the more frugal member states like Germany and other countries, such as France and Italy, which seek more flexibility.
After much wrangling between Berlin and Paris, the 27 member states struck a deal in December, then began talks with negotiators from the European Parliament.
Left-wing officials mocked the text for being overly complicated and for being an instrument of imposing austerity on Europe.
Early on Saturday, the negotiators managed to come to a consensus, allowing the document to be put to a vote in Strasbourg this spring before the parliamentary recess and the European elections.
Once states and legislators reach a consensus, the measures will be formally implemented.
The agreement will let member states incorporate the new regulations into their budgets for 2025.
“The new rules will help achieve balanced & sustainable public finances, structural reforms, foster investments, growth & jobs creation in the EU,” the Belgian presidency said.
