BRUSSELS (Reuters), – It is important that the European Union has money in order to support economies in crisis. Particularly after the end of its post-pandemic recovery fund in 2026.

Gentiloni spoke at an European Central Bank seminar about euro zone fiscal policies. He stated that aside from a fiscal stability tool, EU fiscal regulations, currently under review by the European Central Bank, needed to provide a means to stimulate public investment as well as a reliable way to decrease public debt while not affecting growth.

“Coordinated and countercyclical fiscal policies have been highly successful in mitigating the effects of the crisis.” Gentiloni suggested that it was important to improve the economic response capability of national fiscal policies.

He stated that it also required a European Fiscal Stabilization Tool, which was something the European Commission had suggested in the past.

(2018) The Commission recommended 55 billion euro to be included in the long-term European Union budget. These funds will help support investments in the euro area during economic shocks. They also include structural reforms.

It was abandoned by the 800 billion-euro post-pandemic fund (RRF), for all EU, which will finance the bloc’s transition to a digital and green economy.

While the RRF’s stabilization role is important, it is not the RRF’s core function. As you know, it’s an exceptional tool that will run out in 2026,” Gentiloni said.