EU proposes revamped spending rules to boost growth

(ANSA-AFP) - BRUSSELS, APR 26 - The EU unveiled an overhaul of its fiscal rules on Wednesday, a long-awaited reform that has bitterly divided member states over how to encourage investment while strengthening scrutiny of government spending. The European Commission, the EU's executive arm, presented the proposal to simplify the complex rules, known as the Stability and Growth Pact, which limit how much the bloc's 27 member states can borrow. Critics say the rules have failed to prevent debts from rising among the 27 member states and they must be reformed to fit with the reality of the bloc's diverse economies. But the commission also pointed to boosted defence spending as Brussels comes to terms with what the reality of war raging on the bloc's doorstep, in Ukraine, means for EU countries. The pact is currently suspended following the Covid pandemic and the Ukraine conflict. But the reform has split the bloc between the more frugal northern countries, including Germany, and southern states like Italy. (ANSA-AFP).

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