Vice-Minister of Finance M. Liutvinskas: “When Reviewing the EU Fiscal Rules, We Cannot Ignore the Changed Geopolitical Situation “
On 15-16 June, the Vice-Minister of Finance in Luxembourg will attend the meetings of the Eurogroup (EG) and the European Union (EU) Finance Ministers (ECOFIN), which will focus on the economic situation in the EU, review of fiscal rules and on the development of the Capital Markets Union.
A discussion on the review of the EU fiscal rules will take place during the ECOFIN meeting. The ministers will exchange their views on the draft legislative package presented by the European Commission (EC) and currently under discussion in the Council of the EU.
“We seek that the reviewed EU fiscal rules lead to realistic deleveraging in highly indebted countries and help countries such as Lithuania to maintain a sustainable debt level. Common rules must be sound, transparent and facilitate the enhancement of the growth potential. The fiscal rules also cannot ignore the changed geopolitical situation – we need to create the preconditions for sufficient investment in defence capacity building, while not threatening the long-term sustainability of public finance “, stressed Mr M. Liutvinskas.
The ministers will also discuss the economic situation and prospects in the EU and discuss the impact of the russian war against Ukraine. The meeting will hold policy debates on the VAT package in the digital age aimed at modernising the EU VAT system to make it more business-efficient and more resilient to fraud. The implementation of the Recovery and Resilience Facility (RRF) will also be discussed.
Further work on the development of the Capital Markets Union, including key directions for the future EU legislative cycle, are scheduled to be discussed at the EG meeting in inclusive format.
“We support the further development of the single capital market at EU level. It is important to create better conditions for businesses, including small and medium-sized enterprises, to access capital markets as an alternative source of financing in the EU and thus in Lithuania. We also need to empower retail investors to participate in the capital market by employing savings. In order to create a single EU capital market, the countries also need to do their homework at both national and regional level – here the project of the pan-Baltic capital market serves a good example”, said Mr M. Liutvinskas.
The progress on the digital euro project is also intended to be discussed. In the near future, the EC plans to present a legislative proposal on the legal status of a digital euro aimed at ensuring consistency in the equal treatment of a digital euro and cash.
At the meeting, the ministers will approve the work programme for the second half of 2023. The review reports of post-programme countries (Greece, Cyprus, Ireland, Portugal, Spain) will be presented and the overview of the interim mission to the euro area under Article IV of the Treaty establishing the International Monetary Fund will be made.
Last updated: 20-06-2023
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