Citing European Union (EU) officials, the Financial Times (FT) reported on Monday, “Brussels wants to give EU capitals extra time to curb their debts and create space for public investment as part of a major overhaul of the EU’s deficit rules.”

Additional takeaways

“The European Commission will table a proposal at the end of October to reform the Stability and Growth Pact, under which it would work out multiyear, country-specific plans with capitals for getting their debt burdens under control.”

“The idea is for member states to have greater ownership of their debt reduction plans, which they could fine-tune themselves more than they can do today.”

“But once countries agree their plans with both commission and council, they would need to be delivered and would be easier to enforce.”

“So it’s about balancing member state ownership with tighter enforcement.”

Market reaction

Ahead of the Euro Group meeting, EUR/USD is losing ground once again. The spot is trading at 0.9790, down 0.09% on the day.