The European Commission will re-launch a review of the European Union’s budget rules in weeks, with a view to agree on a reform by 2023, the head of the Commission Ursula von der Leyen said on Wednesday.
The rules, which limit government borrowing to support the value of the euro, are suspended since 2020 to give governments leeway to fight the economic down turn caused by the coronavirus pandemic.
But spending needed to fight climate change and large debt generated by pandemic spending require changes in the rules.
“The Commission will re-launch the discussion on the economic governance review in the coming weeks. The aim is to build a consensus on the way forward well ahead of 2023,” von der Leyen said in an annual policy speech in the European Parliament.