BRUSSELS, (Reuters) – The European Commission will likely propose Monday that the EU keep EU curbs on borrowing from government in 2023 suspended amid economic uncertainty and a steep slowdown in growth due to Russia’s invasion in Ukraine. Officials said.

Stability and Growth Pact are the budget rules of the European Union. They were created to preserve the euro’s value. To allow governments to combat the economic consequences of COVID-19, they were temporarily suspended in 2020 at the beginning of the pandemic.

These were supposed to be reinstated by 2023. However, new economic risks from the conflict in Ukraine and a sharp rise in food and energy prices, as well as the effect on business and consumer confidence, will force the Commission to reevaluate that.

The Commission will communicate Monday that “the conditions to preserve the general escape clause of 2023” and “to deactivate them as of 2024,” officials stated.

According to Commission predictions, last Monday’s war in Ukraine will result in a 2.7% increase in eurozone economic growth, rather than 4.0% as forecasted in February.

The bulk of growth in this year is due to carryover effects beginning 2021. These are pointing out the new fragility of EU’s economy as a result of the Ukraine War.

Already in March, the Commission declared that it wouldn’t apply 2023 to one of the most controversial rules of the suspended framework. Under this rule, governments are required to reduce debt each year by 1/20th the amount above 60%.

Italy and Greece, which have debts of more than 160% of their GDP, are not able to conform.

The March meeting of Euro zone finance ministers was also a signatory to tighten fiscal regulation next year. This is after having spent three years pumping billions of dollars into the economy to combat the pandemic. However, they also agreed that more money would be available in case the conflict in Ukraine becomes necessary.