The Eurozone Gordian knot: how to reform the fiscal framework without abandoning fiscal discipline?

Reforming the European fiscal framework would improve the resilience of the Eurozone…provided that fiscal discipline is not abandoned.

The fiscal rules of the Stability and Growth Pact were temporarily suspended in March 2020 to allow Eurozone states to implement stabilisation policies. They are scheduled to be reactivated in 2023.

For the vast majority of economists, the Stability and Growth Pact framework is obsolete. Let’s recall that keeping identical numerical thresholds for each country in terms of debt (60% of GDP) and deficit (3% of GDP) has no theoretical basis.

You can now read the full whitepaper at the link below