Open letter calling for deep and urgent reform of EU fiscal rules to accelerate the green and just transition

This document is also available in German, French, and Polish.

Ahead of the European Council and the Commission’s orientation paper on economic governance and fiscal rules expected in October, the Fiscal Matters coalition that brings together civil society organisations, academics, think tanks, and trade union leaders published an open letter calling for deep and urgent reform to accelerate the green and just transition, restore trust in the EU and build a solid foundation for a sustainable future. We are calling upon EU leaders to ensure the following principles are at the core of the reform: 

• Build a future-proof economy with jobs for all – Allow fiscal flexibility to target a fully employed economy with decent and well-paid clean jobs available to all.
• Fill the green funding gap and make Europe energy independent from fossil fuels – Targeted and scaled-up green public investment is needed to remain below the 1.5 Celsius goal of the Paris Climate Agreement. A reformed fiscal framework should ensure the alignment of Member States’ public spending with the Paris Climate Agreement, as well as other environmental objectives including reducing resource use and zero pollution.
• Reinvest in public services and social protection – Social expenditure must guarantee universal access to quality basic public services, as well as a social safety net, so no one falls through the cracks and the care economy is central.
• Target human, economic and environmental well-being – Make durable well-being the primary objective of EU economic policy by establishing adequate indicators within the EU’s fiscal policy framework and making sure the rules do not translate again into austerity. Economic growth as a primary objective does not work and governments should rather aim to achieve improved human, economic and environmental outcomes.