Europe’s policymakers will have to take a series of decisions in the months ahead, in order to reinstate, and possibly reform, the bloc’s fiscal rulebook.
Date: February 3, 2021
Topic: European Macroeconomics & Governance
National fiscal policy has played a vital role in mitigating the socio-economic fallout from the pandemic and the associated containment measures. In the European Union, more space for national fiscal policy was given by the March 2020 suspension of the bloc’s common public finance rules, the Stability and Growth Pact (SGP).
For 2021, there is a clear international consensus that the approach taken in 2020 should continue. While the health crisis continues to rage and uncertainty remains elevated, notwithstanding the roll-out of vaccines,