Sovereign debt crisis date
2009
Sovereign debt crisis impact
Due to the high level of economic and financial integration, it put the whole EU at risk with the problem of contagion in risking defaulting on debts
After covid :
- Escape clause to european semester until 2023 -> new fiscal rules
- Recovery and resilience facility until 2027
- MFF mid term review completed fb 2024 with increase in the EU financial capacity
NGEU
Temporary recovery instrument after covid
NGEU goal (5)
- Digital transformation
- Green transition
- Social, economic and territorial cohesion
- Health care resilience
- Modernization
Rulebook proposal : commission
Issues technical trajectories to guide the setting and assess the degree of ambition of their expenditure targets
Rulebook proposal : member states
- Submit medium term fiscal structural plans
- Present annual progress reports
Rulebook proposal : council
Endorses the plans following a positive assessment form the commission
Fiscal adjustment (2024) on who
On member states with a deficit above 3% or debt above 60% of GDP
Fiscal adjustment 4 years ensures
- Deficit under 3% of GDP
- Debt is on a downward path or stays at prudent levels
- Debt must be lower at the end of the plan
- A minimum fiscal adjustment of 0.5% of GDP/year - benchmark (when above 3%)
Fiscal adjustment 7 years
- More gradual adjust. path
- Still need to deliver a sizeable adjust. during 4 year plan
MFF
-Multiannual financial framework
-2021
What is MFF
Eu long term budget till 2027
RRF
Recovery and resilience Facility
What is RRF
Big part of the NGEU initiative, to help the future of EU, green and digital shift
