-
Three risks that must be addressed for new European Union fiscal rules to succeed
The debate on the reform of the European Union’s fiscal rules, the Stability and Growth Pact, has largely focused of their design. This nearly exclusive focus has distracted attention from the equally, if not more, important aspects of implementation. The reform, completed in April 2024, left implementation unaddressed, or at least open to very different potential outcomes. In particular, the reform failed to clarify the interplay between EU countries’ medium-term fiscal structural plans (MTFSPs), which embody the new focus on debt sustainability, and the excessive deficit procedure (EDP), which remains the main ... (full story)