PARIS (Reuters), – France and Germany will reach a deal to modernize the fiscal rules of the European Union to meet economic difficulties following the COVID-19 pandemic. Bruno Le Maire, French Finance Minister, said Monday.

To better reflect the reality of higher debt levels and high costs involved in transitioning into a zero emissions economy, the EU reviewed its fiscal rulebook last month.

Over the years, the Stability and Growth Pact has become increasingly complex and is a source for tensions.

Germany, Germany and other fiscally conservative countries like the Netherlands have always opposed reducing it. But the three parties which will be forming Germany’s next cabinet signaled an openness to reform last week in the agreement they reached.

Bruno Le Maire (Finance Minister) of France said, “I’m convinced we can find an agreement to reform the Stability and Growth Pact” in a news conference that was co-hosted by Paschal Dohoe (Irish Finance Minister).

Le Maire stated that the current debate over the “frugals” of Northern Europe and other EU members was out of date.

Le Maire stated that the main concern now was to find a way for Europe to ‘decarbonize’ its economy and still defend its international interests against economic power like the United States or China.

Donohoe who is chairing the Eurogroup of Eurozone finance ministers said he expects a tough debate over the Growth and Stability pact. However, he believes there will be a lot of progress during France’s EU presidency in the first six month of 2022.

Donohoe explained that although there are divergent opinions on the topics, there’s also an appreciation for what we can collectively do. “I believe we can harness it and I believe there will be an agreement,” Donohoe added.