Jonás Fernández: “The new fiscal rules do not represent a return to the austericide of the old norms” | Economy | EUROtoday

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The socialist spokesperson for the Economy and Monetary Affairs Commission, Jonás Fernández.
The socialist spokesperson for the Economy and Monetary Affairs Commission, Jonás Fernández.Delmi Alvarez

The European Union is only one step away from closing the key reform of fiscal guidelines. Spain has had a distinguished function within the EU Council, which it needed to preside over when its place was confirmed. In Parliament, a Spaniard has additionally performed an necessary function, the socialist MEP Jonás Fernández (Oviedo, 45 years outdated). He has not been the speaker of the norms, that function has corresponded to the Dutch Esther de Lange, on the conservative aspect, and the Portuguese Margarida Marques, on the socialist aspect. But he, as spokesman for the Economy of his group within the European Parliament, has needed to do his half to get his political household to affix the pact, one thing that has required that social spending have some safety. .

“The negotiation with the Council has been very difficult because the text agreed upon by the States introduced some safeguards to the proposals by the Commission and to the position of Parliament, especially the safeguard of the public deficit, which represented a significant obstacle in the negotiation at least since the perspective of the socialist group,” he explains along with his attribute calm and prudent tone and with typically technical language. The safeguards that this Asturian economist who labored within the consulting agency of former minister Carlos Solchaga speaks of are the reference that international locations, as soon as they cease submitting to adjustment plans to cut back their debt (and people that don’t want them) will carry their deficit nearer. at 1.5% and never the three% restrict set by the EU treaties. Did Spain quit lots? “It is not about Spain giving in more or less. His responsibility was to reach an agreement and he achieved it.”

Not solely because of this, Fernández defends the ultimate results of this new Stability and Growth Pact, the official title of the fiscal guidelines. “It allows us to get out of these last years, in which the rules have not been applied [para dejar que el presupuesto público pudiera responder a las consecuencias económicas de la pandemia y la invasión de Ucrania], with new rules that are substantially better than the current ones, allowing a fiscal consolidation process accompanied by certain space for investments.” So, are the austerity of the final decade and the monetary disaster behind us? “As they have not been applied in recent years, perhaps we have forgotten that the regulations exist and that those still in force incorporated a very notable fiscal restriction. These do not represent a return to that but rather a return to certain norms that must govern in a monetary union without a common fiscal policy,” he states. Therefore, for him, it was not an choice to totally re-apply the foundations to get replaced within the coming weeks: “It would mean a return to austericide,” he stated.

The ultimate settlement, which the European Parliament should ratify earlier than its exercise is paralyzed in May, is just not its splendid textual content. “It's the best we could achieve,” he admits. This MEP with nearly ten years of expertise within the corridors of the European Parliament wants to make sure that the foundations have been extra the results of an general fiscal imaginative and prescient than the sum of the 20 international locations of the euro zone plus the opposite seven companions. Although he is aware of that this has an Achilles heel: if this debate is opened, it opens “the possibility of maintaining the Next Generation EU Fund.” [el fondo de recuperación] or some comparable instrument on the group stage that permits complementing nationwide fiscal insurance policies”, that’s, the opportunity of joint debt and a typical fiscal device.

This device might additionally serve to compensate for the little house for public funding that international locations with giant volumes of debt could have when essential to keep away from lacking the prepare of the dual transitions. “We should not only think about national budgets when undertaking these investments. We have seen in recent years how the regulation of state aid has become more flexible to respond to some of these challenges. But that path is dangerous, because, by trying to compete with third jurisdictions [Estados Unidos o China] “We are introducing stress into the cohesion of the single market,” he shoots.

The European legislature is ending. Among Fernández's most direct powers is the regulation that completes the banking union. “We are fundamentally missing European deposit insurance. The Commission made a proposal the previous legislature, but it is true that neither in Parliament nor in the Council have we managed to make progress,” he admits. And would you wish to be within the subsequent legislature to finish it? “The PSOE will open the process in the coming months and it will be time to express our will.”

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https://elpais.com/economia/2024-02-21/jonas-fernandez-las-nuevas-reglas-fiscales-no-suponen-una-vuelta-al-austericidio-de-las-viejas-normas.html