Debt Sustainability in the Emerging New EU Fiscal Framework: A Major Change

Alcidi Cinzia ()
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Alcidi Cinzia: Department of Economic Policy, Centre for European Policy Studies, Place du Congres 1, Brussels, 1000, Belgium

The Economists' Voice, 2023, vol. 20, issue 1, 97-102

Abstract: If agreed, the new European Commission legislative proposals on the reform of the fiscal framework will represent a major change. First and foremost debt replaces budget deficit as central variable, and debt sustainability assessment becomes a pivotal concept. It allows to introduce a multiannual approach and more flexible framework disconnected from numerical rules, which, in principle, gives member states greater ownership but also greater responsibility for their choices. It can only work if member states recognise that debt sustainability assessment is a risk-management tool that has to be taken seriously.

Keywords: EU fiscal governance; debt sustainability; risk-management (search for similar items in EconPapers)
JEL-codes: E61 E62 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1515/ev-2023-0025

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