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The European Union’s budget rules should remain suspended in 2022 but they could be reinstated in 2023, the European Commission said on Wednesday, as reported by Reuters.

“Overall fiscal impulse, stemming from national budgets and the EU recovery fund, needs to remain supportive in 2021 and 2022,” the statement read. “Beyond 2022, EU fiscal policies should continue to take into account the strength of the recovery, degree of economic uncertainty and fiscal sustainability considerations.”

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen trading at 1.2085, losing 0.05% on a daily basis.