“Member States now have the task of building confidence in their future fiscal policies”, so “I am surprised that the safeguard clause” that suspends the Stability Pact “has already been extended until 2023. Also, there sometimes seems to be the impression that fiscal rules will no longer be truly binding in the future. These are the wrong signals to send if we are to generate confidence in sound public finances, even in a context of rising interest rates. ” This was stated by Bundesbank president Joachim Nagel, speaking at the Finance summit in Frankfurt.
Furthermore, according to Nagel, “there are signs that inflation will remain high for now and will only fall gradually next year”, and for this reason, after the rate hike announced for July 21 and that announced for September 8, the number of subsequent steps “will depend on the medium-term outlook for inflation. If it does not improve, a larger increase would be appropriate,” he added. (HANDLE).
Source: Ansa
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