Policy Briefs
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Jan 28, 2022
Returning to a “new normal”: revising the EU fiscal rulebook
Von: Karl Pichelmann
The response of the European Union to the COVID-19 pandemic has been impressively swift and comprehensive. Creating the Recovery and Resilience Facility and establishing a coherent framework for its implementation has involved constructive, as well as intense policy dialogues between the European Commission and EU member states. This bodes well for the debate about the reform of the EU`s fiscal rules. The French EU presidency and the newly formed German coalition government could now provide additional momentum to the debate. Against this background, the author of this Policy Brief argues that the reform needs to address the key challenges of simultaneously reducing high public debt, while ensuring major investments in green transition, digital transformation and simplifying the fiscal rulebook.
The response of the European Union to the COVID-19 pandemic has been impressively swift and comprehensive. Creating the Recovery and Resilience Facility and establishing a coherent framework for its implementation has involved constructive, as well as intense policy dialogues between the European Commission and EU member states. This bodes well for the debate about the reform of the EU`s fiscal rules. The French EU presidency and the newly formed German coalition government could now provide additional momentum to the debate. Against this background, the author of this Policy Brief argues that the reform needs to address the key challenges of simultaneously reducing high public debt, while ensuring major investments in green transition, digital transformation and simplifying the fiscal rulebook.