EU executive to issue guidance “in spring” when to return to EU budget rules

The European Commission will issue guidance “in spring” to EU governments on when it thinks European Union budget rules limiting borrowing should be observed again after they were suspended last year to help fight the effects of the pandemic.

European Commissioner for Economic and Financial Affairs Paolo Gentiloni told a news conference the gradual withdrawal of trillions of euros in national and EU support measures to the economy would have to be managed carefully to avoid a sharp rise in bankruptcies.

Limits on government borrowing set by EU budget rules are suspended until the end of 2021. The timing “in spring” of the Commission guidance on the fiscal stance in 2022 is to allow EU countries time to prepare their budgets for next year.
Source: Reuters (Reporting by Jan Strupczewski)