News item | 04-04-2022 | 17:07
Spain and the Netherlands presented a joint paper on 4 April 2022 on the European fiscal rules, the banking union and the capital markets union. With the paper, both countries want to see where common ground can be found on these topics.
The joint paper argues that deleveraging in highly indebted member states should be realistic and not harm growth. At the same time, both countries believe it is important that debt reduction is taken with consistent and ambitious steps. In the paper, Spain and the Netherlands emphasize that, in addition to austerity measures, this can be achieved both by implementing reforms and growth-enhancing investments, and by improving the quality of public finances. Furthermore, the paper mentions that a greater role for the expenditure rule can contribute to more countercyclical targets and both countries endorse the importance of transparent, explainable rules to achieve equal treatment for member states. In case of non-compliance, there should be clear guarantees that the Commission and the Council enforce the budgetary rules.
The importance of investment is also indisputable. Green and digital are priorities in this regard. Member States must stimulate private investment, but also increase public investment.
Spain and the Netherlands also agree that European measures for strong banks, together with sound agreements on how to improve capital flow through the EU, can contribute to a more resilient economic and financial base, and protect savers and taxpayers. It also improves access to capital for small and medium-sized enterprises. This is emphatically important in a period of recovery after corona.
Minister of Finance Kaag wants to broaden the scope of cooperation within the EU, as in this case with Spain. “The Netherlands and Spain show that together they can achieve a great ambition and that is important for the future of the EU.”