Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
budgetary rules in the EU
Global investment

Budgetary rules in the European Union require revision

21.07.2022
2 min read

Why the European Union budget rules are outdated: expert opinion

The EU is revising its budget rules, which relate to government spending, debt obligations, and investments. Such a step is quite serious for the region, as it affects the development of the EU economy and its future direction.
The rules that are in place now are designed with the Maastricht Treaty in mind. According to the latter, the EU government must control the budget-debt ratio. It is necessary that the budget deficit should remain within 3%, and the public debt should not exceed 60% of GDP. During the pandemic, this rule was not respected, and now the new realities require a revision of the norms.
The geopolitical conflict in Europe, which has affected not only the region but also the whole world, affects the budget formation processes in the EU. Representatives of the Netherlands and Spain have stated the need for reforms. First of all, the changes should affect public investments – officials propose to spend more money in the field of green energy and energy efficiency. In addition, digital transformation also requires large investments.budgetary rulesTo launch the process of changing budgetary rules, the European Commission has already conducted a comprehensive analysis of various areas. In the report, many scientists, financial institutions, and ministries of finance of European states gave their recommendations. According to experts, the new budget rules will help stabilize the financial processes, and at the same time should stimulate the development of green investments.
The problem of climate change is becoming increasingly urgent. A striking example of this is the city of Verviers in Belgium. Last year the local river there burst its banks as a result of climate change. As a result, the city’s buildings were destroyed, the restoration of which will cost more than 45 million euros. This amount is serious for the municipal budget. Moreover, experts warn that this flooding will not be the only one. Experts predict that such cases will occur every 10-15 years.
In addition, climatologists warn of rising temperatures and hot and dry weather. Climate change has to be taken into account in both restoration and construction, but city budgets cannot allocate enough money for such large-scale changes. All this also puts pressure on the economy as a whole, which is already suffering from the effects of pandemic and geopolitical conflicts.
An important issue is to increase investment in green energy, which will reduce dependence on energy exporters. Now EU countries are increasing the number of solar and wind power plants, and their construction requires large funds. This entails enormous expenditures, resulting in growing national debt. Fighting climate change also requires more and more investment.

Tags: Global investment
0
Previous Post Bitcoin exchange Coinbase is now available for users from India Next Post How inflation risk is dangerous for investors and ordinary people

You Might Also Like

Climeworks
Global investment
Climeworks launches new Mammoth project
07.02.2023
PGNiG
Global investment
Polish corporation PGNiG invests in alternative energy industry
10.02.2021
Archer Daniels Midland
Global investment
Archer Daniels Midland Corporation invested in a new plant
26.01.2022
World Financial Institutions
Global investment
World financial institutions are investing in Shanghai
02.12.2020
General Motors Company
Global investment
General Motors to build another electric vehicle plant
20.07.2021
Wefox
Global investment
Insurtech startup Wefox received $650 million in funding
15.02.2022

Recent Posts

  • 1Erik Penser
    Erik Penser: the ups and downs of the Swedish businessman
    30.03.2023
  • 2Royal Dutch Shell logo
    Royal Dutch Shell: the history of the British-Dutch company
    29.03.2023
  • 3discount window features
    Discount window: peculiarities of lending from the Federal Reserve System
    28.03.2023
  • 4LG Energy Solution
    LG Energy Solution invests in battery production expansion
    27.03.2023
  • 5troubled crypto exchanges-2
    SEC to closely monitor troubled crypto exchanges
    26.03.2023

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Where can one obtain citizenship for investing in a country: overview of states?

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Latest Posts

Japanese Central Bank
Japan’s Central Bank widened the range of bond yields
31.03.2023
Erik Penser
Erik Penser: the ups and downs of the Swedish businessman
30.03.2023
Royal Dutch Shell logo
Royal Dutch Shell: the history of the British-Dutch company
29.03.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Where can one obtain citizenship for investing in a country: overview of states?
  • Alibaba Group: the secret of success from the founders of Aliexpress
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics