A joint letter from CAN Europe and the European Environmental Bureau (EBB) expressing concerns from a climate and environment perspective on the European Commission’s proposals to reform the EU economic governance framework.
The proposals on the table offer some leeway to Member States with a debt or deficit above the Treaty reference values to reduce their debt to GDP and deficit to GDP ratio over a longer period of time than under current rules, which is welcome. However, the proposed reforms do not go far enough to effectively generate the fiscal space needed for Member States to be able to make their economies more resilient to upcoming shocks, including climate change impacts. It is also uncertain at this stage whether the provisions on the table will be sufficient to avoid a return of austerity and cuts in public spending for environmental and social issues in several Member States.
The letter also points to climate-related positive elements in the European Commission’s proposals that need to be preserved and strengthened which include preserving the references to climate and social common objectives within the EU such as the European Green Deal and National Energy and Climate Plans (NECPs).