Euroviews. The proposed EU fiscal rules fall short of the changes we need

On 11 December, the European Economic and Social Committee met to discuss the proposal for new fiscal rules for the EU. 

The next day, we met, together with Belgian and European trade unions, in a demonstration against the dangerous outcome of their proposal.

As More than Enough, a coalition of social organisations, unions, anti-poverty and environmental NGOs, we are profoundly worried about the unjustifiably restricting nature of the proposed text. 

It is high time for European finance ministers to balance objectives of debt sustainability with the greatest form of instability that we face today: the climate and environmental crisis.

The journey towards climate neutrality requires a profound reconsideration of our economies and societies. We need significant investments by national governments in a transition that is truly green and truly socially just. 

This should not be at odds with fiscal obligations of how much a country can spend for its citizens' wellbeing; on the contrary, fiscal rules that are fit for purpose can be catalysts for objectives of climate and social justice.

The proposed fiscal rules fall short of the changes we need. A 20th-century-old obsession with debt reduction, at a moment when humanity faces unprecedented climate, environmental and social threats is irresponsible and dangerous, as it risks restricting the means with which national governments will be able to address the coming challenges. 

There will be no debt sustainability without a serious commitment to a sustainable future.

Let’s take a step back. Amidst the COVID-19 crisis, at a time when national governments had to respond promptly to the global health emergency, the fiscal rules were suspended temporarily until 2024. 

The temporary suspension