All EU-related News in English in a list. Read News from the European Union in French, German & Hungarian too.

You are here

European Union

Press release - MEPs: support for Venezuela’s opposition is a “moral duty”

European Parliament (News) - Thu, 23/01/2025 - 13:03
The regime of Nicolas Maduro is illegitimate and his presidency constitutes an unlawful attempt to remain in power by force, MEPs say in a resolution adopted on Thursday.
Committee on Foreign Affairs

Source : © European Union, 2025 - EP
Categories: European Union

Press release - MEPs: support for Venezuela’s opposition is a “moral duty”

European Parliament - Thu, 23/01/2025 - 13:03
The regime of Nicolas Maduro is illegitimate and his presidency constitutes an unlawful attempt to remain in power by force, MEPs say in a resolution adopted on Thursday.
Committee on Foreign Affairs

Source : © European Union, 2025 - EP
Categories: European Union

Press release - MEPs: support for Venezuela’s opposition is a “moral duty”

The regime of Nicolas Maduro is illegitimate and his presidency constitutes an unlawful attempt to remain in power by force, MEPs say in a resolution adopted on Thursday.
Committee on Foreign Affairs

Source : © European Union, 2025 - EP
Categories: European Union

Press release - Composition of Parliament’s new committees released

European Parliament (News) - Thu, 23/01/2025 - 12:43
The names of the members of the two upgraded committees and two new special committees were announced by the European Parliament on Thursday.
Committee on Constitutional Affairs

Source : © European Union, 2025 - EP
Categories: European Union

Press release - Composition of Parliament’s new committees released

European Parliament - Thu, 23/01/2025 - 12:43
The names of the members of the two upgraded committees and two new special committees were announced by the European Parliament on Thursday.
Committee on Constitutional Affairs

Source : © European Union, 2025 - EP
Categories: European Union

Press release - Human rights breaches in the Democratic Republic of the Congo, Iran and Algeria

European Parliament (News) - Thu, 23/01/2025 - 12:43
On Thursday, the European Parliament adopted three resolutions about the respect for human rights in the Democratic Republic of the Congo, Iran and Algeria.
Subcommittee on Human Rights

Source : © European Union, 2025 - EP
Categories: European Union

Press release - Human rights breaches in the Democratic Republic of the Congo, Iran and Algeria

European Parliament - Thu, 23/01/2025 - 12:43
On Thursday, the European Parliament adopted three resolutions about the respect for human rights in the Democratic Republic of the Congo, Iran and Algeria.
Subcommittee on Human Rights

Source : © European Union, 2025 - EP
Categories: European Union

Press release - MEPs condemn Russia’s use of disinformation to justify its war in Ukraine

European Parliament (News) - Thu, 23/01/2025 - 12:23
In a resolution adopted on Thursday, MEPs condemn the Russian regime’s systematic falsification of historical arguments to justify its illegal war of aggression against Ukraine.

Source : © European Union, 2025 - EP
Categories: European Union

Press release - MEPs condemn Russia’s use of disinformation to justify its war in Ukraine

European Parliament - Thu, 23/01/2025 - 12:23
In a resolution adopted on Thursday, MEPs condemn the Russian regime’s systematic falsification of historical arguments to justify its illegal war of aggression against Ukraine.

Source : © European Union, 2025 - EP
Categories: European Union

Fiscal Rules in the European Union: Less Is More

Ideas on Europe Blog - Thu, 23/01/2025 - 11:09

by Bogdan Căpraru (Alexandru Ioan Cuza University of Iași; National Institute for Economic Research, Romanian Academy), Anastasios Pappas (Hellenic Fiscal Council; Kapodistrian University of Athens), and Nicu Sprincean (Alexandru Ioan Cuza University of Iași; National Institute for Economic Research, Romanian Academy)

To kick off 2025, the JCMS blog is highlighting some of the great work published in JCMS in 2024. Here we feature the findings of Fiscal Rules in the European Union: Less Is More’.  

A fiscal rule is a legally binding constraint, often enshrined in legislation or the Constitution, which governs the government’s fiscal policy. They can take different forms, limiting the size of the budget deficit, the growth of public spending or the accumulation of public debt, among others (for a fundamental taxonomy of fiscal rules, see Blanco et al., 2020). The main objective of imposing numerical fiscal rules is to put pressure on the government to follow a prudent fiscal path and to enhance fiscal discipline and credibility (Ulloa-Suárez, 2023), with the ultimate goal of improving the sustainability of public finances.

The fiscal rules of the European Union (EU) have been in place for more than 20 years. The first set of rules was introduced with the Maastricht Treaty in 1992 and focused on public debt and budget deficits. Specifically, Member States were required to keep their budget deficits below 3% of gross domestic product (GDP) and their public debt below 60% of GDP. Since then, the European fiscal framework has evolved, increasing the number and complexity of fiscal rules. In addition to the EU-level rules, many European countries have their own national fiscal rules, which can further complicate the fiscal framework. At the end of April 2024 the European Parliament approved new fiscal rules at the EU level.

Recognizing the complexity of the previous European fiscal framework, the new economic governance framework implies a reduction in the number of rules. The cornerstone of this proposal is the establishment of a single fiscal indicator – the net expenditure path – anchored in debt sustainability, while maintaining the thresholds of 3% of GDP for the budget deficit and 60% of GDP for public debt (European Commission, 2022).

Beginning with this approach, we may encounter several pertinent questions: Does the quantity of fiscal rules influence their efficacy? Moreover, does this relationship hold true when assessing national and supranational rules independently for their effectiveness? Additionally, what other factors have influenced compliance with fiscal rules within EU countries?

Does the number of fiscal rules affect their effectiveness?

Against this background, our new paper argues that there is a non-linear relationship between the number of fiscal rules in place and compliance with the EU’s numerical fiscal targets over the period 2000-2021. Thus, we explore the intricate dynamics between the number of fiscal rules and the adherence to the numerical fiscal targets outlined in the Stability and Growth Pact (SGP) within the European Union.

We find that fiscal rules contribute significantly to fiscal compliance among EU Member States, but only up to a certain threshold. Beyond this threshold, a higher number of fiscal rules may hinder compliance and thus reduce their effectiveness. This finding holds for both national and supranational fiscal rules.

In particular, our results show that having more than three fiscal rules in total can undermine compliance. When considering only supranational fiscal rules, we document that  more than two supranational numerical fiscal targets is less effective, leading to weaker compliance.

What other factors affect compliance with fiscal rules in EU countries?

Our paper examines a number of factors that influence compliance with fiscal rules in the European Union. These factors can provide valuable insights for the formulation of prudent fiscal policies. We classify these variables into macroeconomic factors, political factors, exogenous shocks (such as financial crises) and variables related to monetary policy.

Our results indicate that among macroeconomic factors, the output gap and public debt are significantly associated with compliance with fiscal rules. Specifically, the output gap is negatively associated with compliance, suggesting that the fiscal framework between 2000 and 2021 fostered procyclicality. Similarly, public debt is negatively correlated with compliance, suggesting that non-compliance is linked with the accumulation of additional public debt.

Political factors also play an important role in fiscal rule compliance. We analyse two variables: election years and the frequency of government changes. Both variables turn out to be significant determinants of fiscal rules compliance within the European Union. The negative coefficients of these variables suggest that compliance decreases in election years and that frequent changes of government undermine compliance. These results provide evidence of the existence of political business cycles in Europe and emphasise the importance of political stability in ensuring fiscal rules’ compliance.

Regarding financial crises, our analysis shows that the global financial crisis (2007-2009) and other systemic crises weakened fiscal rule compliance. Moreover, there is evidence that accommodative monetary policy facilitates compliance, as higher long-term interest rates are associated with lower compliance rates.

Contributions to existing literature

Our paper makes several important contributions to the existing literature. First, we provide evidence that an increased number of fiscal rules negatively affects numerical compliance. This finding contributes to the ongoing debate on the complexity of the former European fiscal framework and highlights the need for potential reforms. Second, we adopt a unique approach by separately assessing the impact of national and supranational fiscal rules on countries’ compliance with EU-level rules. Third, we examine the influence of specific factors that may contribute to fiscal rule compliance, thereby broadening our understanding of the underlying dynamics at play.

Conclusions

In this blog article, we discuss the non-linear relationship between the number of fiscal rules in place and compliance with EU regulations for a set of 27 countries over the period 2000-2021. We find strong evidence of a positive relationship between countries’ compliance with the fiscal rules contained in the Stability and Growth Pact  and the number of fiscal rules in place, both national and supranational. However, once a certain threshold is reached, the relationship becomes negative, suggesting that a higher number of numerical fiscal targets may undermine compliance possible due to complexity, confusion and enforcement difficulties. Thus, a smaller number of fiscal rules, both national and supranational, may be a more effective strategy to ensure compliance.

Our findings have important policy implications in the context of the new European fiscal framework, adopted at the end of April 2024. Before the adoption, in its Communications, the European Commission (2023a, 2023b) presented legislative proposals to implement the European fiscal framework, reiterating the need for “simpler rules” that take into account “different fiscal challenges” and incorporate “lessons learned from policy responses to recent economic shocks, including the interaction between reforms and investments under the Recovery and Resilience Facility”. The simplicity and flexibility of the new governance framework, which includes fewer fiscal rules, is consistent with our empirical findings. According to our results, fewer fiscal rules anchored to an important fiscal target, such as the reduction of the public debt ratio, can lead to greater efficiency in achieving the desired outcomes.

Bogdan Căpraru is a Professor of Finance and Banking at Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iași, Romania. He is also an associate senior researcher at National Institute for Economic Research, Romanian Academy. Since July 2019 he has been a member of the Romanian Fiscal Council, nominated by the Romanian Association of Banks, and since September 2023 he has been elected Vice Chair of the Network of EU Independent Fiscal Institutions.

His research focuses on banking, central banking, financial regulation, independent fiscal institutions and fiscal and monetary policy. He has published in high-ranking academic journals and has various editorial experience as editor-in-chief and editorial board member. He is a columnist for major national media and an invited speaker at prestigious national and international institutions.

Anastasios Pappas is the Head of Research Department of the Hellenic Fiscal Council and Adjunct Professor of Economics at the MBA course of the National and Kapodistrian University of Athens. He has received a Bachelor’s degree in Business Administration from the University of the Aegean (with scholarship), an MSc in International Banking and Financial Studies from the University of Southampton (UK) and a PhD degree in International Macroeconomics from the University of the Aegean. He has taught various courses (Macroeconomics, Microeconomics, Political Economy, Business Economics etc) at the University of Aegean and at the National and Kapodistrian University of Athens at both undergraduate and postgraduate level. Furthermore, he has worked as an economist, credit analyst and consultant in various positions in private and public sector in Greece. His research interests cover topics concern, inter alia, Macroeconomic, Fiscal and Monetary Policy, Economic Forecasting, Financial Crises and Capital Mobility.

Nicu Sprincean is a Lecturer in Finance at Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iași, and a Scientific Researcher at National Institute for Economic Research, Romanian Academy. His research focuses on fiscal and monetary policy, business and financial cycles, banking and central banking, financial intermediation, and empirical finance. More details here.

The post Fiscal Rules in the European Union: Less Is More appeared first on Ideas on Europe.

Categories: European Union

Press release - EP TODAY

European Parliament (News) - Thu, 23/01/2025 - 08:33
Thursday, 23 January

Source : © European Union, 2025 - EP
Categories: European Union

Press release - EP TODAY

European Parliament - Thu, 23/01/2025 - 08:33
Thursday, 23 January

Source : © European Union, 2025 - EP
Categories: European Union

Highlights - Constitution as full Committee and exchange of views with Polish Presidency and NATO - Committee on Security and Defence

On 27 January, after its constitution as new fully-fledged Committee, SEDE holds exchange of views with Paweł Zalewski, Secretary of State at the Ministry of National Defence of the Republic of Poland, on the Polish Presidency priorities in the area of the EU security and defence. On 28 January, the SEDE Committee - in association with the Delegation for relations with the NATO PA (DNAT) - holds an exchange of views with James Appathurai, NATO Deputy Assistant Secretary General for ...
Innovation, Hybrid, and Cyber on the Baltic Sentry and hybrid threats, to debrief the Members on the recent Summit of Baltic Sea Allies, which took place in Helsinki. Furthermore, the SEDE Coordinators will have an in camera exchange of views with Andrius Kubilius, Commissioner for Defence and Space, on the White Paper on Strengthening European Defence.
Source : © European Union, 2025 - EP

Brexit Britain: Lost at sea

Ideas on Europe Blog - Wed, 22/01/2025 - 13:42

Which way is the wind blowing for little Britain?

Little? Yes. We are a tiny, isolated, island in a corner of the North Sea, now quite alone in the world, lost, and lonely.

We’ve turned away from our closest allies, our neighbours on our continent, with whom we used to enjoy a close affinity, and a leading role, as a full member of the European Union.

But our relatively new Prime Minister, Sir Keir Starmer, has made it clear: there is no path back.

For the past five years, Sir Keir, as Labour leader, has repeatedly and emphatically declared, “There is no case for going back into the EU and no case for joining the Single Market or customs union.”

No case! That’s the door closed shut. Not even ajar.

Yet Labour’s promises hinge on one critical factor: economic growth – and lots of it.

Persisting with barriers to trade with our biggest trading partner in the world by far – our own continent – is the antidote to economic growth.

If Sir Keir refuses to look east towards Europe for economic opportunity, will he turn west instead, aligning with Trump’s America? Increasingly, this seems to be the strategy.

Starmer is now pursuing a trade deal with the USA, a long-cherished but elusive goal of Brexiters. He has assembled a ‘mini-Cabinet’ of senior ministers tasked with achieving this objective.

Back in 2019, when Trump was President and Starmer wasn’t yet Labour leader, he opposed Brexit plans to prioritise ties with the USA over the EU.

Such a deal, he warned, would have “obvious consequences for our public services, for businesses, for food and environmental standards and for workers’ rights.”

It was not something, he strongly stated, that Labour “will ever countenance.”

How times change.

Now, despite being desperate for an economic lifeline to reverse Britain’s post-Brexit fortunes, Starmer has dismissed Europe as the solution.

Of course, Trump may well say ‘NO’ or demand huge trade-offs for a trade deal.

But Reform leader, Nigel Farage, has offered the Labour government his help to seal what GB News described as a “mega-Brexit deal” with the US. Mr Farage told The Telegraph:

“The US is our most important relationship in the world. Forget Brussels.”

If Britain looks west rather than east, the dream of Rejoiners – to rejoin the EU – could be extinguished for a generation or longer.

This, despite consistent polling showing that most Britons believe Brexit was a mistake and now support EU membership.

A new poll published on the front page of The Observer shows voters clearly favour prioritising more trade with the EU than the US.

But where is the big campaign to explain why we should join the EU again? It doesn’t exist.

In the nine years since the referendum, there has not been any prominent, powerful, professional campaign to present to the nation the positive benefits of EU membership for Britain and Britons.

If Britain chooses the west, the chance to reorient eastward may slip away – perhaps forever.

This could well be Britain’s last opportunity to chart a course back to Europe.

The post Brexit Britain: Lost at sea appeared first on Ideas on Europe.

Categories: European Union

Press release - MEPs debate the Polish Presidency’s priorities with Prime Minister Donald Tusk

European Parliament (News) - Wed, 22/01/2025 - 13:23
Donald Tusk outlined to MEPs on Wednesday his goals for Poland’s helming of the EU Council presidency and the country’s "Security, Europe!" strategy.

Source : © European Union, 2025 - EP
Categories: European Union

Press release - MEPs debate the Polish Presidency’s priorities with Prime Minister Donald Tusk

European Parliament - Wed, 22/01/2025 - 13:23
Donald Tusk outlined to MEPs on Wednesday his goals for Poland’s helming of the EU Council presidency and the country’s "Security, Europe!" strategy.

Source : © European Union, 2025 - EP
Categories: European Union

Press release - Parliament denounces the upcoming sham presidential election in Belarus

European Parliament (News) - Wed, 22/01/2025 - 12:49
In a resolution adopted on Wednesday, MEPs call on the EU to reject the upcoming presidential election in Belarus on 26 January as a sham.
Committee on Foreign Affairs

Source : © European Union, 2025 - EP
Categories: European Union

Press release - Parliament denounces the upcoming sham presidential election in Belarus

European Parliament - Wed, 22/01/2025 - 12:49
In a resolution adopted on Wednesday, MEPs call on the EU to reject the upcoming presidential election in Belarus on 26 January as a sham.
Committee on Foreign Affairs

Source : © European Union, 2025 - EP
Categories: European Union

Press release - Parliament denounces the upcoming sham presidential election in Belarus

In a resolution adopted on Wednesday, MEPs call on the EU to reject the upcoming presidential election in Belarus on 26 January as a sham.
Committee on Foreign Affairs

Source : © European Union, 2025 - EP
Categories: European Union

Pages