Opinion

The carrot and the stick: proposals for reform of EU fiscal rules

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Published: February 22nd, 2022,
Last updated: May 28th, 2025

By Victor Warhem and Marc Uzan
Victor Warhem is Policy Analyst and Marc Uzan is Director of the Centre de Politique Européenne (cep) in Paris.

Many voices, in and out of the EU, are calling for a change of the Economic Governance of the EU. Among them, the European Fiscal Board (EFB) is pleading in favor of a modification of the fiscal rules of the Stability and Growth Pact (SGP), assessed to be too complex and poorly adapted to national contexts and specificities. Besides, the IMF, the World Bank, and the European Central Bank also consider that it is necessary to revise the SGP’s framework once again, despite prior revisions in 2005, 2011, 2012, and 2015.

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Finance Climate & Environment European policy Financial policy Stability Pact