The European Union will terminate budgetary easing related to the COVID-19 pandemic and extended in 2022 due to the conflict in Ukraine, according to Valdis Dombrovskis, Executive Vice President of the European Commission. The authority requests that EU nations stabilize their budgets in this respect.

« The streamlined regulations for state assistance to business, which were implemented in response to the coronavirus pandemic and prolonged as a result of the conflict in Ukraine, will expire at the end of 2023, according to the European Commission. EU nations are urged by the European Commission to stabilize their budgets by 2023 », – Dombrovskis declared during a news conference in Brussels.

The nations will have clear suggestions as well as their own deficit reduction goals. The authority warned that the deficit should be lowered by cutting not public investment but spending. The end of budgetary easing signals the return of stringent regulations for state subsidies to European businesses, which were dependent on this aid.

The European Commission also noted that, now that energy costs declined, government subsidies for energy should be discontinued. President of the European Commission Ursula von der Leyen said on March 5 that the EU had completely eliminated its reliance on Russian oil and gas.

source: ec.europa.eu