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The Fight Over EU Fiscal Reform

In April, the European Commission released an updated proposal for reforming the Stability and Growth Pact that includes more rigid debt “safeguards.” But the changes defeat the entire purpose of devising a new framework for member states’ fiscal policies.

LONDON – Last November, the European Commission proposed a radical reform of the European Union’s Stability and Growth Pact. The debate that followed – and the updated proposal that the Commission released in April – revealed that, despite the progress the EU has made in designing common policies over the last few years, mistrust still prevails.