Reform of the fiscal rules in the EU

Dealing with the consequences of the Covid pandemic as well as the necessary major transformations of our time - the ecological as well as the digital - pose enormous challenges for the EU and its member states. Substantial public investment is needed to meet these challenges.

In view of these challenges, it seems doubtful whether the EU's fiscal rules, set in particular by the Stability and Growth Pact (SGP), are still appropriate. They already had to be suspended during the Covid crisis. It has been argued from various sides, most recently by France's President Macron and Italy's Prime Minister Draghi, that the fiscal rules are an obstacle to the necessary public investment. From other sides, it was pointed out that the existing rules are sufficiently flexible. A debate on the further development or reform of the SGP is inevitable. The different perspectives among the member countries should be taken into account.

In this dialogue we contrasted and discussed problem analyses and policy recommendations from France, Italy, Spain and Germany.

Program

14:00               Welcome

                        OFCE/FES

14:10               Reform of the EU Fiscal Rules: A necessary but also difficult debate

Introduction and moderation: Lucie Robequain, financial newspaper Les Echos

14:20               Inputs

• Daniel Fuentes Castro, Spain
• Achim Truger, Germany
• Andrea Boitani / Roberto Tamborini, Italy
• Jérôme Creel / Xavier Ragot / Xavier Timbeau, France 

15:00               Debate