URSULA VON DER LEYEN has been warned her Commission’s flagship recovery plan lacks the flexibility needed for EU member states to get back on their feet after the pandemic.
The warning came from the US Treasury Secretary Janet Yellen, who questioned whether the bloc should reimpose the eurozone’s rigid spending and deficit rules. Aligning with southern EU states, already clashing with northern and more frugal countries in the bloc, the US finance chief said: “It’s important to think about whether or not [the rules]create the flexibility that countries in the EU need in order to be able to address cyclical developments.
“We have been in a very low interest-rate environment.
“I expect we will remain there, although that’s to be determined, but is 60 percent debt-to-GDP ratio the right kind of metric?
“We did too little to address on the fiscal side.