Prime Minister Robert Golob expressed the need for a ‘flexible’ fiscal rule as he hosted the Economy Commissioner Paolo Gentiloni for a debate on reform of economic governance in the EU on Thursday.
“We understand the need to re-introduce the fiscal rule, but it must allow sufficient flexibility to enable us to respond to changes,” the prime minister said, underlining that “a definition of ‘flexible’ must be agreed because now we all see it differently.”
He believes flexibility must be the guideline for all changes; not just for the fiscal rule, but also for state aid, energy and market restructuring.
“This is because the pace of changes is relentless and we are slipping from one crisis to the next. We need flexibility to be able to respond,” he said, adding that a balance must be found between investments and fiscal sustainability.
According to current plans, the EU Commission plans to end the suspension of the fiscal rule at the end of this year and Golob is optimistic that Slovenia could reintroduce it next year.
Gentiloni believes Golob’s call for flexibility is sensible, especially given the current uncertain times.
The ability to adapt public finance policy and the increasingly tougher monetary policy to the changing circumstances requires a flexible attitude, though clear rules are needed at the same time, he said.
(Sebastijan R. Maček | sta.si)
Source: euractiv.com
