Brussels, Belgium – EU finance ministers failed to seal a deal on an overhaul of the bloc’s spending rules on Friday, but still hope to reach an agreement before the end of the year.
The lack of approval comes despite the ministers meeting for a dinner on Thursday to discuss the reform, before talks stretched into the early hours of Friday.
The European Union wants to change fiscal rules that are considered by many capitals too strict, giving states more flexibility and room to invest in areas that are the bloc’s priorities.
The current rules, albeit suspended since 2020, say states must keep debt below 60 percent of gross domestic product and deficits below three percent of GDP.
Germany has clashed with France especially over deficit reduction limits.
Berlin insists there must be “safeguards” to ensure that member states reduce excessive deficits annually, while Paris wants more wiggle room to allow countries to invest.
“We can find an agreement by the end of this year. It requires a lot of work,” French Finance Minister Bruno Le Maire said.
“We stand ready to work very hard to get an agreement by the end of 2023,” he added.
German Finance Minister Christian Lindner also pointed to progress but insisted that the issue over deficit limits remained important.
“Excessive deficits should not be excused. Excessive deficits must be reduced,” Lindner said.
The French and German finance ministers could not even agree on how much progress they made during the dinner.
Le Maire said the ministers had made “95 percent” progress, up from 90 percent a day earlier, but Lindner put it at “92 percent”.
Spanish Economy Minister Nadia Calvino suggested there could be an extra meeting of ministers to try to strike a deal during the week beginning December 18, after a summit of EU leaders next week.
Le Maire said he would be open to another meeting before December 25.
Brussels is seeking to approve the reform of the rules, known as the Stability and Growth Pact, before they kick back in next year after being suspended since the coronavirus pandemic began.