EC Considering Ways to Rewrite Budget Rules in Growth Push: FT

(Bloomberg) -- EU officials are planning to simplify budgetary rules to give governments softer debt reduction targets, the Financial Times reports citing an internal brainstorming document.

• Officials are looking at ways to rewrite the Stability and Growth Pact in a plan known informally as “SGP 2.1,” the FT says
• The new plan aims to “restore trust among members in the EU executive’s enforcement of the rules”
• The document says the SGP has led to “imprudent fiscal positions” and “procyclical fiscal policies” that impose overly-restrictive limits on struggling governments, FT says
• NOTE: Aug. 23, German Suspicion of Stimulus Risks Too-Late Recession Response
  • Aug. 22, ECB Saw Need to Counter Doubt Over Ability to Hit Inflation Goal

To contact the reporter on this story: Polina Noskova in New York at pnoskova@bloomberg.net

To contact the editor responsible for this story: Sarah Kopit at skopit@bloomberg.net

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