Reaction: European Parliament approved reformed fiscal rules hampering investments toward climate neutrality

Financing the transition| Europe in transition

On 23 March 2024, The European Parliament approved the reformed EU Fiscal Rules. Commenting on the vote, Isabelle Brachet, Senior Fiscal Reform Policy Coordinator at Climate Action Network Europe, said:

“The new EU fiscal rules are like a blast from the past, pushing our economy back to austerity. This is not what we need to build a prosperous and resilient economy in Europe. The new rules will encourage cuts in public spending, despite the massive investments needed to support workers, farmers, households and companies in the transformation of the EU’s economy towards circularity and climate neutrality. 

Member states can still choose another path than the cuts on social and climate spending. Instead, they can decide to find additional financial resources, for example, by taxing the wealthiest and the heaviest polluters. With the European elections on the way, the adoption of a new fund for climate and just transition should be on the top of the next EU strategic agenda.”

For more information and media requests:

Jani Savolainen, Communications Coordinator


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