Moscovici: EU states must strike balance between sustainability and stability
EU member states need to strengthen their public finances with the view to finding funds to finance their medium-term and long-term investments, EU Commissioner for Financial Affairs Pierre Moscovici said on Tuesday, in reply to European Parliament Vice President Dimitris Papadimoulis.
Papadimoulis asked Moscovici whether the Commission was aware that excessive public debt is hampering efforts to restore the investment climate and the eurozone’s recovery, calling on him to submit specific proposals for dealing with public debt.
Moscovici said that the public debt is rather high in certain states of the euro area and significant efforts need to be made to reform public finances. Given the problems that high debt can cause to growth, a modest fiscal policy is required to reduce it, he added.
The Commissioner explained that this policy must achieve a balance between sustainability and stabilization needs in accordance with the Stability and Development Pact, so that it guarantees an improvement of the fiscal position while sustainable economic recovery supports a further reduction of the debt. More specifically, member states with high borrowing costs need to immediately reduce their debt, he underlined.
Moreover, member states should guarantee a favourable business climate in order to attract investments, he added.
Source: amna-mpa
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