BRUSSELS – The European Union’s fiscal response to the financial results of the Russian invasion of Ukraine have to be extra focused and selective than the blanket help provided through the COVID-19 pandemic, European Financial Commissioner Paolo Gentiloni mentioned.
The conflict in Ukraine has decreased euro zone development forecasts to 2.7% this yr from 4.0% predicted in February, because the Russian invasion hit confidence and provide chains and sharply boosted power costs that triggered a surge in client inflation.
“Now we've a brand new disaster, and the brand new disaster is just like the earlier one as a result of it's once more an exterior shock, with uneven penalties amongst international locations — relying on the (variety of accepted) refugees, oil dependency on Russia and so on,” Gentiloni advised a panel on the Brussels Financial Discussion board.
“However it isn't the identical disaster and it can not justify the identical degree of supportive fiscal insurance policies. So it's crucial now to have extra focused, extra selective actions in supporting our financial system,” he mentioned.
He mentioned this might be the advice that the Fee would make subsequent week to EU governments, when it presents a proposal on the EU’s fiscal stance in 2023 — whether or not or to not preserve EU limits on authorities borrowing suspended subsequent yr.
“I feel we can not undertake this universally supportive fiscal coverage. Extra choice, extra concentrating on. That is what we'll recommend in our spring bundle,” he mentioned.
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