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EU prepares to reform its fiscal rules, informally known as the stability and growth pact

And “stability” is a misnomer; the pact’s tools may limit public borrowing but they don’t guarantee stability, as Spain and Ireland’s experiences in the eurozone sovereign debt crisis showed.

The “general escape clause” was first triggered in the pandemic and then extended after Vladimir Putin’s assault on Ukraine. When governments start planning their 2024 budgets next year, they will need to know what rule book to go back to.

The EU’s northern flank of smaller liberal states were traditionally strictest  

Much more constructive attitude on budget policy, including surprising new constellations such as a joint Dutch-Spanish position.


Will Germany play ball? The answer is probably yes. 

Will the reforms achieve enough? Here, the answer is probably no.

Martin Sandbu  FT 25 Septembr 2022


Jfr Gunnar Sträng om löntagarfonderna: 

Steg för steg ska vi socialisera samhället, men vi ska inte basunera ut det på gator och torg där det kan missförstås.

It is politically impossible to propose that now. But some day there will be a crisis and new instruments will be created."

Romano Prodi, EU Commission President. Financial Times, 4 December 2001


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