Press release
Minister McGrath welcomes political agreement on new EU Economic Governance Framework
Published on
Last updated on
Published on
Last updated on
On Wednesday 20 December, Minister for Finance Michael McGrath participated in an extraordinary ECOFIN video conference with one item on the agenda – a discussion to reach an agreement on the reform of Europe’s economic governance framework.
Speaking immediately after the meeting Minister McGrath stated:
"I warmly welcome the political agreement at ECOFIN which will lead to a reform of Europe’s fiscal rules, a key pillar of economic coordination in the EU. An enormous amount of time and effort has been invested to try and find a way forward.
"I would like to congratulate the outgoing Spanish presidency for their hard work and perseverance. I would also like thank my ministerial colleagues across Europe for the productive and in-depth discussions we have had on this issue over recent months.
"I have always been a strong believer in the need for effective rules to guard against unsustainable debt levels and I believe this agreement will be an important tool for ensuring economic stability and prosperity in Europe."
The EU’s economic governance framework is a set of common rules for national fiscal and economic policies which apply to all Member States. They serve to ensure the sustainability of public finances and promote convergence while addressing macroeconomic imbalances.
On 26 April 2023, the Commission presented legislative proposals to implement the most comprehensive reform of the EU’s economic governance framework since the aftermath of the global financial crisis. The central objective of these proposals is to strengthen public debt sustainability while promoting sustainable and inclusive growth in all Member States, in particular through supporting reforms and investment.
The political agreement reached today is the focal point of many months of intense negotiation and engagement by ministers and officials.