Towards a revision of the Stability and Growth Pact

After the pandemic, and the launch of NextGenerationEU (NGEU), a revision of the fiscal rules of the Stability and Growth Pact (SGP) and the Fiscal Compact is a necessity. The situation in the Union has changed dramatically, with the application of the general escape clause, and the financing of the NGEU through the issuance of €750 bn worth of bonds onto the market, notwithstanding that these are extraordinary and time-limited measures. [...] Paper prepared for the “Public debate on the review of the EU economic governance” launched by the European Commission.. [...]