Fiscal Rules - Time for a Reboot
14 March 2023
The EU fiscal rules are one of if not the most discussed aspects of EU economic policymaking. With the impact of COVID-19 and the impending climate catastrophe, it is almost unanimously agreed that they are in need of reform. Midst the pandemic, fiscal rules have been suspended and the EU put in place a series of unprecedented measures in Europe’s history.
The EU’s regime of fiscal governance, enshrined in the Stability and Growth Pact and the Fiscal Compact, is perhaps the strictest of any region in the developed world. This policy study aims to assess what reforms can be made to ensure the sustainability public finances across the EU, enable much-needed climate investment while preventing the growth of inequality between and within member states: This study provides an in-depth analysis of the fiscal rules, their evolution, and their shortcomings, and how they may be reformed.
As Europe has emerged from repeated crises in recent years, it is of utmost importance that governance ensures sustainable prosperity for all.
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