EU Fiscal Rules Reform: Social Platform’s analysis of institutional positions

The Council keeps the Commission’s problematic approach to deficit reduction, forcing Member
States to bring and maintain their deficit-to-GDP ratios below the 3% threshold over the course
of the adjustment period of 4 or 7 years (in case of an extension). With 12 Member States
reporting deficit ratios above 3% in 2022, this risks being a very steep adjustment for several
Member States with high deficit ratios.

Overall, the European Parliament suggests several welcome improvements compared to the
Council position, both regarding the fiscal adjustment requirements as well as reforms,
investments & stakeholder involvement. However, it maintains some problematic rules for fiscal
adjustment.

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