Germany sounds the alarm about the European Union accounts. “For Germany it is essential to return the EU countries to solid and sustainable public finances as soon as possible”, the message sent by the German Finance Minister, Christian Lindner, on the sidelines of Ecofin, which will attend a debate on the stability pact system reform.
“We are – says the German exponent sending a message to the entire continent – at the beginning of an exchange of views on the economic governance of the Union, the situation has changed. We have to deal with higher debts after the pandemic and this energy war with Russia. This is why we need to readjust the framework for Germany. It is essential that we get back to sound and sustainable public finances as soon as possible. We need a reliable and credible way to reduce deficits and debt-to-GDP ratios in the European Union. We recognize Member States’ investment needs, we need private and public investment for the green transition, but there is no excuse for avoiding structural reforms in our economies.”
Therefore, explains Lindner, there is “openness for greater flexibility in a medium-term perspective, but we need a reliable path for this reduction”. The Berlin finance minister thinks in particular “of the younger generations. Now we see higher interest rates. It is a complicated situation, where, on the one hand, we have to pay interest to the capital market and, on the other hand, we seek investments from the public sector. I prefer to pay lower interest rates and use that money for investments. That is why we are in favor of sound public finances.”
Source: IL Tempo
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
