The 27 European Union member states and the European Parliament have agreed on new budget rules, according to the Belgian EU presidency. These new fiscal rules aim to provide EU countries with a more tailored approach to reducing their debt ratio.
Critics have long found the previous rules too complex and strict, which led to months of negotiations between the member states. As a result, some adjustments have been made to the rules. Countries that record a larger deficit than the 3 percent rule will now have to make an annual effort of 0.5 percentage points. The requirements will be higher for countries with a higher debt burden.
However, before these new rules can be officially implemented, the European Parliament and all 27 member states must give their approval. Once approved, these new budget rules will provide EU countries with greater flexibility in managing their finances while still maintaining control over their debt levels.