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Covid-19 Pandemic

Dáil Éireann Debate, Tuesday - 9 November 2021

Tuesday, 9 November 2021

Questions (277)

Bernard Durkan

Question:

277. Deputy Bernard J. Durkan asked the Minister for Finance if he will indicate the future fiscal measures, if any, required throughout the Eurozone in the context of Covid-19 recovery; and if he will make a statement on the matter. [54728/21]

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Written answers

The exceptional economic circumstances of the past eighteen months have seen a strong consensus on fiscal policy across the EU. Coordinated policy actions at EU and national levels have helped to reduce the economic impact of COVID-19. One of the most important of these actions was the activation of the general escape clause (GEC) of the Stability and Growth Pact in March 2020. The activation of the clause allowed for a temporary suspension of the normal operation of the European fiscal rules. In June of this year, the activation of the clause was extended into 2022. As a consequence, Member States can continue to benefit from the flexibility the clause gives to take the necessary fiscal measures required to deal with the impact of the pandemic on the economy and society in general.

As the Deputy will be aware, the European Commission last month published a Communication which relaunched the review of the fiscal governance framework. I strongly welcome the re-opening of the Commission’s review, as I believe now is the right time to discuss possible reforms to the existing fiscal framework in Europe. The Communication also indicated that in the first quarter of 2022, the Commission will provide guidance for budgetary policy for the period ahead, with the purpose of facilitating the co-ordination of fiscal policies. The guidance will reflect the global economic situation, the specific situation of each Member State and discussions on the governance framework. It is critical that we work together in these matters, to ensure we navigate the path to a full and balanced recovery.

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