European Union to introduce more flexible fiscal rules
14:03
These rules are intended to encourage reforms and investments and to be tailored to the specific situation of each country.
In 2022, 11 member states exceeded the 3 percent deficit threshold. The worst was in Italy, which recorded a deficit of 8 percent of GDP. Poland's deficit was 3.7 percent, but it jumped to 5.6 percent in 2023. According to Hanna Cichy of Polityka Insight, the rules on public debt are also problematic. She argues that it is unfair to punish current governments for the debt levels inherited from their predecessors.
The new fiscal rules are still subject to negotiation, but they are expected to be adopted by the European Parliament and the European Council in 2024.
