The European Commission has relaunched a comprehensive review of the economic governance framework of the European Union. This initiative is necessary considering the impact of the Covid-19 pandemic on public finances as well as the investment needs in the context of the green and digital transformation. The review process comes with several challenges: an agenda which is particularly broad, the inclusive nature of the debate, involving many stakeholders and, as far as fiscal governance is concerned, the necessity for EU member states to strike a balance between committing to policy discipline whilst keeping national fiscal policy leeway. Given the state of public finances in most EU countries, sensible fiscal rules are necessary to gradually create the much-needed fiscal room for manoeuvre.
Reforming EU economic governance: the start of a marathon
Published on October 25, 2021 in :
Structural policy