Keravnos calls for more flexible EU fiscal rules to support households and businesses

Luxembourg, Luxembourg. Finance Minister Makis Keravnos on Friday called for greater flexibility in EU fiscal rules to allow member states to increase spending and support households and businesses struggling with inflation and the energy crisis.

Calls for fiscal flexibility

Speaking ahead of the Ecofin meeting in Luxembourg, Keravnos expressed confidence that the European Commission would respond to member states’ calls for greater flexibility in economic governance.

“There is a very serious need for action, solutions and support for our citizens and businesses,” he said.

“We cannot remain within an economic governance framework that does not take into account inflation, which is rising rapidly at this time. I expect further discussion and a solution to be found.”

Keravnos acknowledged that some EU countries held different views on fiscal flexibility, but said there was growing recognition that the energy crisis was a structural problem requiring long-term solutions.

Long-term response to the energy crisis

Keravnos warned that escalating military conflicts and the worsening energy crisis were putting increasing pressure on households and businesses, with consequences extending beyond the economy.

“The energy crisis has reached its peak, threatening our households and businesses, not to mention democracy itself,” he said.

He argued that the European Commission must address the underlying causes of the crisis rather than focus solely on short-term financial support. Alongside measures to boost household incomes, he called for investment in the infrastructure needed to address energy challenges permanently.

Support for Greek and Italian positions

Keravnos also expressed support for the positions outlined in letters sent by Greek Prime Minister Kyriakos Mitsotakis and Italian Prime Minister Giorgia Meloni to European Commission President Ursula von der Leyen.