This chapter deals with the period from the outbreak of the COVID-19 pandemic in 2020 to shortly before the Commission made its proposal for the reform of the Stability and Growth Pact (SGP) in 2023. Despite the divergence over the financial assistance instruments to tackle the pandemic, all member states agreed that the fiscal regulation paradigm of Economic and Monetary Union had to be partially suspended through the “general escape clause” in order to allow governments to spend as much as they needed to face the negative consequences of the pandemic. However, the chapter outlines that this SGP suspension was partial because the Recovery and Resilience Facility introduced a “backward-looking” conditionality linked to the European Semester. In 2023, it was clear, after the turning point of the pandemic, that member states had a common interest, for different reasons, to reform the SGP. Germany advanced its fiscal ideas of stringency and automaticity and made a conditional opening on some flexibility when it comes to investments. It also stressed the importance of direct and non-discretional enforcement of the rules, which should remain uniform. France pushed for growth, differentiated rules, and a discretional and bilateral enforcement process. Italy supported flexible rules. The Commission exchanged views with member states before presenting its official proposal for the SGP reform on 26 April 2023.