This chapter examines the period from the end of the euro crisis (ca. 2014) to the year prior to the COVID-19 pandemic (2019). The fiscal rules were criticised as being too complex, too strict, difficult if not impossible to enforce, unable to consider the specific circumstances of member states, very rigid, and democratically problematic. In some countries, they did not allow sufficient economic growth. Hence, flexibility became prominent as a fiscal idea to interpret the rules differently without formally changing them. Under pressure from Italy, the Commission adopted a broader definition of the investment clause when member states committed to structural reforms, thus also considering country-specific circumstances. In the debate on a new fiscal capacity for the EU, France was vocal and Germany timid. On new fiscal regulation for the EU, France was timid and Germany was vocal. While Italy and the centre-left parties in Germany endorsed flexibility and treaty reform, parties of the centre-right in Germany would give their green light only to more stringency and automaticity of the rules. Anti-EU parties opposed EU fiscal regulation as a whole. Plans to reform EU fiscal regulation were interrupted by the COVID-19 pandemic, which broke out in early 2020.

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Questioning Fiscal Regulation (2014–2019): The Proposals to Reform the Stability and Growth Pact

  • Tiziano Zgaga

摘要

This chapter examines the period from the end of the euro crisis (ca. 2014) to the year prior to the COVID-19 pandemic (2019). The fiscal rules were criticised as being too complex, too strict, difficult if not impossible to enforce, unable to consider the specific circumstances of member states, very rigid, and democratically problematic. In some countries, they did not allow sufficient economic growth. Hence, flexibility became prominent as a fiscal idea to interpret the rules differently without formally changing them. Under pressure from Italy, the Commission adopted a broader definition of the investment clause when member states committed to structural reforms, thus also considering country-specific circumstances. In the debate on a new fiscal capacity for the EU, France was vocal and Germany timid. On new fiscal regulation for the EU, France was timid and Germany was vocal. While Italy and the centre-left parties in Germany endorsed flexibility and treaty reform, parties of the centre-right in Germany would give their green light only to more stringency and automaticity of the rules. Anti-EU parties opposed EU fiscal regulation as a whole. Plans to reform EU fiscal regulation were interrupted by the COVID-19 pandemic, which broke out in early 2020.