Adequate reform of the fiscal rules of the Stability and Growth Pact can lead to a revitalization of the necessary investments in the energy market and in the field of defense, and from this point of view, the energy price crisis can be mitigated with the help of the Stability and Growth Pact reform, says Minister of Public Finance, Adrian Câciu.

Adrian Câciu presented to his Czech counterpart, Zbynek Stanjura, Romania’s position on the revision of the fiscal rules of the Stability and Growth Pact, in a meeting held in Brussels, in the margins of the meetings of the ECOFIN Council and the Eurogroup in extended format.

The Czech Republic will hold the Presidency of the Council of the European Union in the second half of this year, and the Czech Minister of Finance has assured that reaching a compromise on European economic governance will be one of the priorities of his term. The two ministers agreed that a return to the old European fiscal rules is unrealistic, and a new approach is needed to maintain the maximum 3% ceiling for the budget deficit. At the same time, possible compromise solutions should apply uniformly to all Member States.

“Romania supports ensuring flexibility for investment, including the main security and energy challenges we face. In this regard, we welcome the Czech Republic’s commitment to prioritize the reform of fiscal rules during the EU Council Presidency, ensuring a balance between the speed of the process and the quality of the outcome of the negotiations. In a critical context from a geopolitical point of view, but also marked by the challenges of rising energy prices, inflation or the prospect of blockages in supply chains, the appropriate reform of the rules from the Stability and Growth Pact can lead to a revitalization of the necessary investments in the energy market and in the field of defense. From this point of view, the energy price crisis can be mitigated with the help of the Stability and Growth Pact reform,” said Adrian Câciu.

The talks between the two finance ministers also focused on developments on other important issues such as the revision of the Energy Taxation Directive (ETD) or the “Fit for 55” package proposed by the European Commission in 2021. At the same time, Minister Adrian Câciu assured Romania’s support for the implementation of the Czech Republic’s priorities during the Presidency of the Council of the European Union, in the second half of 2022.