{"id":149218,"date":"2024-02-13T03:00:43","date_gmt":"2024-02-13T02:00:43","guid":{"rendered":"https:\/\/www.cde.ual.es\/?p=149218"},"modified":"2024-02-12T13:19:00","modified_gmt":"2024-02-12T12:19:00","slug":"council-and-european-parliament-reach-agreement-on-reform-of-eu-tax-rules","status":"publish","type":"post","link":"https:\/\/www.cde.ual.es\/en\/council-and-european-parliament-reach-agreement-on-reform-of-eu-tax-rules\/","title":{"rendered":"Council and European Parliament reach agreement on reform of EU tax rules"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>The Council and European Parliament negotiators reached a provisional political agreement on the proposed reform of the EU\u2019s economic governance framework.<\/strong><\/p>\n<p><a href=\"https:\/\/www.cde.ual.es\/wp-content\/uploads\/2024\/02\/egr-1st-column.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-149219\" src=\"https:\/\/www.cde.ual.es\/wp-content\/uploads\/2024\/02\/egr-1st-column.png\" alt=\"\" width=\"1150\" height=\"647\" srcset=\"https:\/\/www.cde.ual.es\/wp-content\/uploads\/2024\/02\/egr-1st-column.png 1150w, https:\/\/www.cde.ual.es\/wp-content\/uploads\/2024\/02\/egr-1st-column-300x169.png 300w, https:\/\/www.cde.ual.es\/wp-content\/uploads\/2024\/02\/egr-1st-column-1024x576.png 1024w, https:\/\/www.cde.ual.es\/wp-content\/uploads\/2024\/02\/egr-1st-column-768x432.png 768w\" sizes=\"(max-width: 1150px) 100vw, 1150px\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">The main objective of the reform is to ensure sound and sustainable public finances, while promoting sustainable and inclusive growth in all member states through reforms and investment.<\/p>\n<p style=\"text-align: justify;\"><strong>Main elements of the provisional agreement<\/strong><\/p>\n<p style=\"text-align: justify;\">The Council and Parliament agreed to maintain the reform\u2019s overall objective of reducing debt ratios and deficits in a gradual, realistic, sustained and growth-friendly manner while protecting reforms and investment in strategic areas such as digital, green, social or defence. At the same time, the new framework will provide appropriate room for counter-cyclical policies and address macroeconomic imbalances.<\/p>\n<p style=\"text-align: justify;\">The agreement also maintains the obligation for member states to submit national medium-term fiscal structural plans.<\/p>\n<p style=\"text-align: justify;\">The Commission will submit a \u2018reference trajectory\u2019 (previously called \u2018technical trajectory\u2018) to member states where government debt exceeds the 60% of gross domestic product (GDP) or where the government deficit exceeds the 3% of GDP. The provisional agreement provides for an optional and factual pre-dialogue between the member states and the Commission beforehand.<\/p>\n<p style=\"text-align: justify;\">The reference trajectory indicates how member states can ensure that by the end of a fiscal adjustment period of four years, government debt is on a plausibly downward trajectory or stays at prudent levels over the medium-term.<\/p>\n<p style=\"text-align: justify;\">The provisional agreement contains two safeguards that the reference trajectory must comply with, the debt sustainability safeguard, to ensure a decrease in debt levels and the deficit resilience safeguard, to provide a safety margin below the Treaty deficit reference value of 3% of GDP, in order to create fiscal buffers.<\/p>\n<p style=\"text-align: justify;\">Based on the reference trajectory, member states then incorporate the fiscal adjustment path, expressed as net expenditure paths into their national medium-term fiscal structural plans. The plans, including the net expenditure paths, consequently need to be endorsed by the Council. The agreement provides that a control account will record deviations from the country-specific net expenditure paths.<\/p>\n<p style=\"text-align: justify;\">The new rules will further encourage structural reforms and public investments for sustainability and growth. Member states will be allowed to ask for an extension of the four-year fiscal adjustment period to maximum seven years, if they carry out certain reforms and investments that improve resilience and growth potential and support fiscal sustainability and address common priorities of the EU. These include achieving a fair, green and digital transition, ensuring energy security, strengthening social and economic resilience and, where necessary, the build-up of defence capabilities.<\/p>\n<p style=\"text-align: justify;\"><strong>Next steps<\/strong><\/p>\n<p style=\"text-align: justify;\">The provisional political agreement on the preventive arm of the economic governance framework is subject to approval by the Council in the committee of permanent representatives and by the Parliament economic affairs committee before going through a formal vote in both the Council and the Parliament. Once adopted, the text will be published in the EU\u2019s official Journal and enter into force the following day.<\/p>\n<p style=\"text-align: justify;\">The regulation on the corrective arm and the directive on requirements for budgetary frameworks of member states only require the European Parliament to be consulted.<\/p>\n<p style=\"text-align: justify;\">The aim is to adopt them in the Council at the same time as the preventive arm.<\/p>\n<p style=\"text-align: justify;\"><strong>More information: <a href=\"https:\/\/www.consilium.europa.eu\/es\/press\/press-releases\/2024\/02\/10\/economic-governance-review-council-and-parliament-strike-deal-on-reform-of-fiscal-rules\/\">European Council<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Council and European Parliament negotiators reached a provisional political agreement on the proposed reform of the EU\u2019s economic governance framework. The main objective of the reform is to ensure sound and sustainable public finances, while promoting sustainable and inclusive growth in all member states through reforms and investment. Main elements of the provisional agreement [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":149219,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[4090,346,4088],"tags":[4415,368,11510],"class_list":{"0":"post-149218","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy-finance","8":"category-eu-news","9":"category-market","10":"tag-economic-governance","11":"tag-european-union","12":"tag-fiscal-rules","13":"entry"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Council and European Parliament reach agreement on reform of EU tax rules | CDE Almer\u00eda - Centro de Documentaci\u00f3n Europea - Universidad de Almer\u00eda<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cde.ual.es\/el-consejo-y-del-parlamento-europeo-alcanzan-un-acuerdo-sobre-la-reforma-de-las-normas-fiscales-de-la-ue\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Council and European Parliament reach agreement on reform of EU tax rules | CDE Almer\u00eda - Centro de Documentaci\u00f3n Europea - Universidad de Almer\u00eda\" \/>\n<meta property=\"og:description\" content=\"The Council and European Parliament negotiators reached a provisional political agreement on the proposed reform of the EU\u2019s economic governance framework. 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