Tax & Spend
EU Strikes Fiscal Rules Deal With Gradual Path to Cut Debt
- Revamp will grant more leeway for national defense spending
- Germany succeeded in introducing guardrails for debt reduction
The reform aims to give capitals a bigger say in how they rein in debt and deficits, while improving enforcement where limits are exceeded.
Photographer: Oliver Bunic/BloombergThis article is for subscribers only.
European Union finance chiefs ended months of wrangling over fiscal rigor to agree on new rules that will aim to rein in debt and define the bloc’s ability to invest in key sectors such as defense for years to come.
In the end, the unanimous deal among 27 member states was clinched on a video conference that lasted less than two hours, concluding negotiations launched just before the Covid pandemic.