Yellen Weighs Into EU Fiscal Debate, Urges Greater Flexibility

U.S. Treasury Secretary Janet Yellen entered an often heated debate in the European Union over how to readjust public finances following Covid-19, saying that more flexible fiscal rules are needed.

The EU has suspended debt and deficit constraints linked to its cornerstone Maastricht Treaty to allow nations to cope with the additional spending needed to fight the pandemic. The so-called Stability and Growth Pact is due to kick in again in January, though some countries are pushing for changes to the strict rules when they return.