Bond Markets Want Clarity on EU Deficits, ESM Economist Says
- Bloc is trying to agree new debt rules by the end of this year
- Strauch says governments must stick to tougher fiscal stance
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European Union governments must resolve divisions over new deficit and debt rules to give clarity to bond markets on how they will repair public finances after the Covid pandemic and energy crisis, European Stability Mechanism Chief Economist Rolf Strauch said.
Limits designed to avoid runaway borrowing have been suspended since 2020 to allow support for households and businesses. EU capitals are still at loggerheads as they scramble to agree a revamp before the old pact is reinstated on Jan. 1.