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Minister of Finance expects a relaxed Stability and Growth Pact

13/03/2020 15:46

Minister of Finance Constantinos Petrides expressed confidence that the Eurogroup will decide on Monday to relax the constraints of the Stability and Growth Pact, to help member-states address covid-19`s economic effects.

Replying to a CNA question on the issue, Petrides said there’s co-ordination of all member -states, and Cyprus with the European Commission, on measures to address the effects of coronavirus.
 
"This is something that should be taken for granted, as there are no real disagreements and most countries, if not all, will have to deviate from their original plans," the Finance Minister said, replying to a question on a possible decision on easing the fiscal constraints set by the Stability and Growth Pact.
 
In addition, the Finance Minister stressed that such a development would mean greater legal flexibility in the effort to combat coronavirus effects.

European Commission President Ursula von Der Leyen said last Wednesday, that the Commission “will use all the tools at our disposal to make sure the European economy weathers this storm”.
 
She also said that the Commission will make sure that state aid can flow to companies that need it and will make full use of the flexibility which exists in the Stability and Growth Pact.
 
She also said that she will come with concrete ideas before the Eurogroup on Monday.