EU’s New Fiscal Rules: Balancing Budgets with Green and Digital Ambitions
The recently enacted EU fiscal framework aims for fiscal prudence but poses challenges for funding the green and digital transition.
Philipp Heimberger
An analysis of the new European fiscal rules
EU member states submit fiscal plans, influencing economic stability and public debt for years to come.
Reform of EU fiscal rules—more ambition needed
What the European Commission proposes makes sense as far as it goes. But that is not nearly far enough.
Towards a permanent EU investment fund
Meeting the EU’s climate and energy goals will mean ramping up public investment via a permanent fund.
The ECB should not hike interest rates
Europe’s central bank is under pressure to raise interest rates to counter rising inflation. It should resist it.
Higher public debt = lower growth?
The pandemic-induced crisis has seen fiscal policy relaxed. Ill-evidenced orthodoxy must not be allowed to reinstate austerity.
Corporate tax cuts do not boost growth
Implicit in the global ‘race to the bottom’ on corporation tax in recent decades has been that this favours growth. Yet does it?