Seán Kelly (PPE). – A Uachtaráin, this report for Economic Policy Coordination outlines the European Ϸվ’s contribution to the annual European Semester cycle, very supportive.
The report describes the economic risks Member States are facing and highlights the necessary steps to alleviate these challenges. The report recognises the risks of a high debt-to-GDP ratio in Member States, and that the recent increase in interest rates makes debt servicing an ongoing and heightened challenge.
Ϸվ’s report concurs with the Commission’s recommendations on the need for support measures to be targeted, and that prudent medium-term fiscal positions must be pursued.
The adopted report highlights the need to have proper enforcement of fiscal rules and a strong role for independent fiscal institutions. In essence, the report reiterates that robust economic growth, sound fiscal policies and a healthy balance between government revenues and expenditure are necessary to reduce legacy debt and make debt sustainable in the long run.