Europe’s budget rules are in dire need of an overhaul. A new regime of higher inflation means the European Central Bank cannot on its own support growth or prevent fragmentation. But governments are hampered by fiscal constraints that are too simplistic and which, after years of breaches, lack credibility.
We propose changes to fix these problems and pave the way for a better balance between fiscal and monetary policies. By promoting long-term growth prospects and debt sustainability, our suggestions would help limit the risk premium that investors demand for holding European public- and private-sector assets.
You can now read the full whitepaper at the link below
