Thursday, January 27

IMF advocates simplifying EU fiscal rules

The International Monetary Fund (IMF) has expressed its support for a reform of the fiscal rules of the European Union that contributes to reducing their complexity and overlap with national regulations, thus facilitating compliance with them.

“We have promoted a reform of the EU fiscal rules because they are extremely complex and we have asked for them to be simpler, which would make it easier to monitor and apply them,” he said. Alfred Chamber, Director of the IMF’s European Department.

In this sense, the official has pointed out that sometimes these European tax regulations overlap with national rules and give rise to inconsistencies, “which has led to a lot of discretion as to how to apply them, causing the main objective of making fiscal policies not to be met. more stringent during times of growth to create buffers with which to face the most difficult times ”.

Likewise, the official recalled that from 2023 the fiscal policy of European countries “must be consolidated” to place the debt on a downward trajectory and for this the rules will be essential.

Temporary rebound in the price of electricity

On the other hand, the director of the IMF European Department has recognized the impact of the rise in gas prices in Europe, particularly in countries like Spain with “dynamic” prices where any ‘shock’ in the wholesale energy production markets entails a very rapid transmission to the retail sector.

The Spanish economy took certain measures to be able to reduce the impact on the most vulnerable of what we consider to be a temporary price rebound that will vanish in the second quarter of the year, ”said Kammer.

In any case, the IMF official has argued that the current situation gives rise to a broader questioning about the climate transition.

“We must invest in energy storage, energy production to avoid problems in the transition to a greener economy. It is valid for Spain but also for Europe and worldwide ”, he concluded.