EU Backs German Push to Look at Easing Fiscal Rules
EU leaders meeting in Brussels Thursday called on the European Commission, the bloc’s executive arm, “to explore further measures” with regard to the so-called stability and growth pact.
For decades, EU policy has been shaped and constrained by Germany’s insistence on controlling public borrowing, both at home and in other member states.
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Berlin’s radical change came only one year after the country opposed a similar move requested by some member states when the fiscal rules were reformed in 2024.
The EU’s budget rules limit member states’ debt to 60% of GDP and the deficit to 3%.
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Romano Prodi, Commission president from 1999 to 2004, asserted in October 2002 that the stability pact was “stupid” because it provided for sanctions on countries already in financial difficulties.
When the euro was born everyone knew that sooner or later a crisis would occur. It was also clear that the stability and growth pact was – as I have said before – “stupid”
Prodi: It is politically impossible to propose that now. But some day there will be a crisis and new instruments will be created."
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