Economic Governance Review: What rules for the post-pandemic environment?

This European Fiscal Monitor—the sixth in a twice-yearly series—covers 24 European economies. It looks at national developments through the eyes of the Independent Fiscal Institutions (IFIs). The latest update reflects submissions received from members over winter 2019/20.

This issue highlights how the modest euro area recovery and low interests are helping the public finances. Yet against that backdrop, debt remains high in many cases, while there is concern among some IFIs that the budgetary roof has not been mended while the sun shines. In other cases, some countries with low debt burdens are still running tight fiscal policies.

This monitor comes at an interesting time with a wider debate taking place about the fiscal governance framework in Europe and whether it is fit for purpose. The Network of EU Independent Fiscal Institutions will gather its members’ thoughts on the European Commission’s review of the fiscal framework in the coming months.”