Fiscal rules: a more flexible framework to avoid permanent 'whatever it takes'

More leeway granted to Member States to reduce their public deficit to below 3% of GDP and limit their debt to 60%.

Presented on Wednesday and particularly awaited, the proposals of the European Commission reforming the “stability and growth pact”, frozen since the coronavirus crisis, inevitably suggest that they are paving the way for more budgetary laxity.

The measure providing for giving more freedom to governments in the development of their medium-term budgetary adjustment plans, with the reforms to be carried out and their priorities in terms of investment, calls into question.

Dangerous context of rate hikes

This is also the case for the establishment of an intermediate debt level target set at no less than 90% of GDP for states like France which are highly indebted, before returning to 60% in a second stage.

What disempower a little more Paris which, for decades, has failed to take the bull by the horns for really…

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