One year since the outbreak of COVID-19: fiscal policy response

Summary:

Communication published by the European Commission on 3 March 2021, setting out guidance on fiscal measures to address the effects of the COVID-19 (coronavirus) pandemic.

Further information:

The Communication provides guiding principles for the design and quality of the fiscal policy across the European Union (EU). It sets out the Commission's considerations regarding the deactivation or continued activation of the general escape clause. It also provides general indications on the overall fiscal policy for the period ahead, including the implications of the Recovery and Resilience Facility (RRF) for fiscal policy.

This document also confirms the Commission's intention to relaunch the public debate on the EU's economic governance framework, once recovery has taken hold.

• Primary Source

• Alternative Source

News

Reuters, 03/03/2021: EU should keep borrowing limits suspended in 2022 - Commission https://www.reuters.com/article/idUSL5N2L13IE

Bloomberg, 03/03/2021: EU Set to Prolong Suspension of Bloc’s Budget Rules Until 2023 https://www.bloomberg.com/news/articles/2021-03-03/eu-set-to-prolong-suspension-of-bloc-s-budget-rules-until-2023

EurActiv, 03/03/2021: Commission wants to keep fiscal rules suspended in 2022 https://www.euractiv.com/section/economic-governance/news/commission-wants-to-keep-fiscal-rules-suspended-in-2022/

---

Official

European Commission: Press Release, 03/03/2021: Commission presents updated approach to fiscal policy response to coronavirus pandemic https://ec.europa.eu/commission/presscorner/detail/en/ip_21_884

European Commission: Questions and answers: Communication on fiscal policy response to coronavirus pandemic (3 March 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_885

European Commission: Remarks by Executive Vice-President Dombrovskis on the updated approach to the fiscal policy response to the coronavirus pandemic (3 March 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_1010

European Commission: Remarks by Commissioner Gentiloni on the updated approach to the fiscal policy response to the coronavirus pandemic (3 March 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_1012

---

ESO Records

Communication on the activation of the general escape clause of the Stability and Growth Pact (March 2020) https://www.europeansources.info/record/communication-on-the-activation-of-the-general-escape-clause-of-the-stability-and-growth-pact/

---