Eurozone ministers back tougher fiscal stance for 2024 | – #Eurozone #ministers #tougher #fiscal #stance
BRUSSELS, March 13 (Reuters) – Eurozone finance ministers on Monday Europe They supported the commission’s recommendation to start tightening fiscal policy and phase out government support for businesses and households against high energy prices.
Last week Europe The Commission did not expect the expected technical recession, labour that the market is very crowded and Europe As borrowing costs skyrocketed as the Central Bank tried to bring down high inflation European Union called on their governments to start gradually tightening the financial policy.
“While uncertainty surrounding the outlook remains high, particularly on geopolitical and energy-related factors, risks to growth appear more balanced than before,” the ministers said in a statement.
“We agree that prudent fiscal policies through 2023-24 should ensure medium-term debt sustainability, while sustainably raising potential growth and meeting green and digital transitions and sustainability targets through investment and reforms,” he said.
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“In the light of economic prospects and high inflation and in the context of tighter financing conditions, we reiterate that broad-based fiscal stimulus for aggregate demand is not guaranteed,” they said.
Ministers reiterated their pledge to better coordinate policies that support the economy against high energy prices so that poorer countries, which cannot afford the same energy subsidies as richer countries, are not put at a competitive disadvantage.
“In the absence of renewed price shocks, we will continue to phase out energy support measures, which will help reduce government deficits,” the ministers said in their statement.
Reporting by Jan Strupczewski; Edited by Sharon Singleton
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2023-03-13 22:38:54
Source – reuters
Translation“24 HOURS”