EU Reaches Agreement on Spending Rules

The European Parliament and member states have reached an agreement on reforming the rules governing the European Union's budget, aiming to stimulate investments while keeping spending under control.

The agreement involves updating the current rules known as the Stability and Growth Pact, issued in the late 1990s, which sets a cap on countries' debts at 60 percent of gross domestic product and on the budget deficit at three percent.

The Belgian presidency announced in a post on the X platform, "Deal!" after talks that lasted about 16 hours.

European Commission President Ursula von der Leyen said, "I welcome this political agreement on our ambitious reforms to the economic governance of the European Union."

She added, "The new rules will enable EU countries to invest in their strengths while strengthening their public finances. This is our common growth path."

Over the past two years, the European Union has made intensive efforts to develop reforms supported by more cautious member states regarding spending, such as Germany, and others pushing for more flexibility, such as France and Italy.

After prolonged wrangling between Berlin and Paris, the 27 member states reached an agreement in December, then began talks with negotiators from the European Parliament. Source: Agencies