Brussels relaunches reflection on easing fiscal rules in the euro area

Will the mountain of debt give birth to a mouse?

The European Commission launched a consultation on Tuesday on reforming deficit and debt rules for euro area member states.

Given the extent of disagreements between countries on these subjects, bringing about an overhaul of the

Stability and Growth Pact

as the European executive wishes, is a challenge.

This reflection had already been initiated in February 2020, on the eve of the surge of the Covid-19 pandemic.

A month later, the need to face an economic tsunami had shattered all the budgetary rules, which were urgently suspended for 2020. The exemption clause was renewed for 2021 and then 2022. In 2023, the rules must come into effect in force.

But what rules?

Squaring the circle

At the end of a crisis where massive support from states saved economies from disaster, the criteria of a maximum 3% of GDP deficit and 60% debt appear to be obsolete in the eyes of many.

Average debt

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