European Union to suspend bloc’s budget rules in order to fight coronavirus

Finance ministers approved a suspension of the EU’s deficit limits Monday so treasuries can boost spending in a bid to stop the coronavirus from cratering the economy.

Ministers, meeting by videoconference, gave the green light to a European Commission proposal triggering the “general escape clause” from the bloc’s budget rules.

Governments can now use more financial muscle to stimulate their economies — pumping money into hospitals, businesses, benefits to citizens and the like — without fear of punishment from Brussels.

“This temporary flexibility will help national authorities do all they can to support their health systems, businesses and workers,” Commission Executive Vice President Valdis Dombrovskis said in a statement. “We will continue to act decisively and in full solidarity with our Member States at this time of need.”

“Today’s agreement reflects our strong determination to effectively address the current challenges, to restore confidence and support a rapid recovery,” ministers said in a statement. They adding that they “remain fully committed to the respect of the Stability and Growth Pact.”