(Bloomberg) -- The European Union will delay restoring rules limiting deficits and debt by one more year to allow room for generous spending by member states to address the fallout from the war in Ukraine.

The European Commission will on Monday propose extending a suspension of the budget rules -- enshrined in the Stability and Growth Pact -- until the end of 2023, according to EU officials familiar with the plan who asked not to be identified discussing confidential information.

Under the rules, which had been set aside until the end of this year due to the coronavirus pandemic, national deficits are limited to 3% of gross domestic product and public debt to 60% of output.

The decision to prolong the suspension, first reported by Politico, is expected to be approved by member states.

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