The Economic and Social Council (CES) has expressed concerns regarding the new European fiscal rules that were approved at the beginning of the year. The council believes that these rules do not fully address the main issues faced by the previous system, as they maintain complexity, are procyclical, and lack protection for investments. To address these shortcomings, a report released by the CES includes recommendations such as achieving the Banking Union, deepening financial integration with the Capital Market Union, defining an industrial policy, and issuing joint public debt (eurobonds) to strengthen the EU’s resources system.
The CES emphasizes the need for a new recovery fund to support technological and green investments in Europe. The report also reflects on the new fiscal rules which aim to limit annual public deficits to 3% of GDP and keep public debt below 60%. The CES president, Antón Costas, believes that Europe must decide whether to adopt a rigid or compassionate approach within these fiscal rules, especially in light of the upcoming European Parliament elections.
The council highlights the importance of reforming European mechanisms with budgetary capacity, reinforcing investment mechanisms at the European level, and complementing national fiscal policies to address current macroeconomic challenges. The report also stresses the need to balance the new fiscal framework with monetary policy and complete the Banking Union to ensure financial stability and economic resilience in the EU.
Furthermore, the CES recommends deepening financial integration to advance