EU Seeks to Reform Fiscal Rules for More Flexibility on Deficits and Debt
-
The EU is reforming its longstanding fiscal rules to adapt to new economic realities like COVID-19, war, inflation. The 3% deficit and 60% debt limits stay but with more flexibility.
-
Frictions remain on pace of debt reduction, with high-debt countries wanting flexibility and Germany pushing for binding cuts.
-
Investments for green transition and tech seen as crucial but question is how to budget for them under fiscal rules.
-
Enforcement of rules has been uneven so proposals aim to speed up process and introduce smaller fines.
-
Concerns over balance of power between Commission and member states in proposed new system of fiscal plans.
![](https://static.euronews.com/articles/stories/07/98/11/62/1000x563_cmsv2_04f8adaa-d46a-5f4b-b0a3-f4e7c245c020-7981162.jpg)