History Article
Close
This article was published on 13 January 2015 to 16:46 hours.
The last modified on 13 January 2015 to 18:51 hours.
STRASBOURG – The European Commission today unveiled two expectations measures that should serve – in view of the New Community executive – to revive the economy and undermine the risk of stagnation and deflation in the euro zone. In addition to new guidelines on the interpretation of the Stability and Growth Pact, which offer new Italy leeway in repair their public finances, Brussels has also shown the structure of the new European Investment Fund strategic.
In terms of the rules of public finance, the package presented today here in Strasbourg focuses on three aspects: the clause of the reforms, the provision of investment, and the need to adapt the fiscal adjustment to economic conditions the individual country. In fact, the new guidelines could allow it to avoid further efforts of public finance in 2015, provided the country is convincing in modernizing its economy.
Ultimately, the new interpretation rules allow a country to temporarily deviate from its path of fiscal consolidation when adopting major reforms, with a long-term impact on the national budget, and if the economy is particularly weak. The new flexibility will be associated with stringent conditions. At the same time, the country will be able to deviate from its path of fiscal adjustment in the presence of state investment in the projects co-financed by the Union.
On the other side, the one that provides for the creation of a new European Fund for strategic investments (Efsi), the Commission outlined today the legislation that will go now before Parliament and Council. The goal is to launch all within half a year so that the new EU could generate investment of 315 billion Euros over three years. In recent weeks it has become clear that the most controversial aspect is the government of the new fund.
The Commission said that investment decisions should be made by independent experts, while governments have asked to influence the choices. Brussels has opted for a compromise. The Efsi will be led by two bodies: a board of directors and a committee of investments. The first will bring together the members of the Fund (now the European Investment Bank and the European Commission), and will be responsible for guidelines. The vote of each shareholder will depend on its contribution to the capital.
The second scheme, however, will bring together six independent experts and a general manager. They will choose the specifi projects that will benefit from the money of the Fund. However, the Investment Committee “will be accountable to the Governing Council,” it said in a press release. As part of the dispute between the European Commission and national governments on the management of the Fund, it is difficult to understand what this formula means in practice. The ambiguity is probably deliberate.
© ALL RIGHTS RESERVED
Permalink
No comments:
Post a Comment