Answer given by Mr Gentiloni on behalf of the European Commission
15.11.2023
Based on Protocol No 12 to the Treaty and the European System of Accounts[1], no expenditure can be excluded from the government deficit calculations.
However, particular consideration is given to financial contributions to fostering international solidarity when assessing compliance with deficit and debt criteria.[2]
On 26 April 2023, the Commission adopted legislative proposals for reforming the EU fiscal rules.[3] These proposals provide incentives for investments and reforms needed to address common EU priorities, including to build up defence capabilities.
Also in the case where the deficit and/or debt criteria are not met by a Member State, the necessary fiscal adjustment could be spread over a longer period if the Member State commits to a set of relevant reforms and investments. Such a more gradual fiscal adjustment may also create room for defence spending.
The Commission proposals also provide for g eneral and country-specific escape clauses for extraordinary situations (e.g. severe downturn in the EU or exceptional events at national level outside the control of the Member States).
- [1] Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union (ESA2010) (OJ L 174, 26.6.2013, p. 1).
- [2] Article 2(3) of Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (OJ L 209, 2.8.1997, p. 6).
- [3] New economic governance rules fit for the future https://economy-finance.ec.europa.eu/publications/new-economic-governance-rules-fit-future_en