The date marked on the calendar for reaching an agreement on fiscal rules before the end of the year seems to be much closer. The latest document presented by the Spanish presidency brought closer positions between the Twenty-Seven at the meeting of finance ministers this Thursday in Brussels and has raised more optimism than expected, especially after the concessions offered to Germany and the countries that demanded stricter rules to reduce the deficit and debt.
“There is still a lot of work to do, we have one last kilometer to walk, but like the pilgrims on the Camino de Santiago, we are beginning to see the cathedral,” said Economic Vice President Nadia Calviño, using a simile and a nod to her homeland. The ministers are moving their chips and despite the division that was seen until a month ago, with the very bitter positions of France and Germany and with the calendar closing in, the effort may be bearing fruit.
The German Finance Minister, Christian Lidner, leader of the hardest wing of the negotiations, considered it “progress” that the Spanish document recognizes the application of safeguards to ensure the reduction of debt and annual deficit, he even claimed to be “much more optimistic.” ” to close discussions at the end of the year. “Now what we have to consider is the level of ambition, now it's about talking about numbers, not just instruments,” urged the German politician. Also another of the countries that demands more toughness, the Austrian minister Magnus Brunner, considered the proposal as “positive.”
The Spanish proposal provides for the introduction of safeguards for those countries that have a debt greater than 60% of GDP and a deficit greater than 3%, although even when the latter is lower, an additional margin may be applied below this limit to act in a crisis situation.
In the Spanish document, according to European sources, investments in defense and the ecological transition are maintained as issues to be taken into account when setting the adjustment paths for each country - one of the novelties of the Commission's proposal and shelving an equal reduction for everyone without taking into account the reality of each Member State. Something especially valued by Italy, which has still shown its discomfort because the Spanish document defends the application of an additional margin for the deficit.
However, all eyes are on France and Germany, which are trying to iron out their differences by invoking the spirit of the Franco-German axis. Christian Lindner traveled to Paris last week with the intention of advancing the discussions and his French counterpart, Bruno Le Maire, will travel to Berlin soon to find a common position. Some conversations that Calviño has valued as “extremely useful” for the pact.
The differences between Berlin and Paris seem to be bridged little by little, even Le Maire, who until a month ago was clear in demanding flexibility and less rigidity for the countries, celebrated that the Spanish document was a basis for finding the balance between “financial stability ” and the scope for investments to face competition from China and the United States.
With December just around the corner, Spain plans to put a legislative draft on the table “in the coming days” with a view to discussing it at an extraordinary meeting of ministers at the end of November.
