Europe
EU Reaches Tentative Agreement on Fiscal Rules to Rein In Debt
- Reform will grant more leeway for defense, climate spending
- Deal offers gradual fiscal improvement path for governments
This article is for subscribers only.
The European Union hashed out a preliminary agreement on fiscal reform that will aim to reduce debt and protect investment in key areas such as defense and the green transition.
The political deal will introduce a gradual fiscal adjustment path for nations whose government debt exceeds 60% of gross domestic product or whose deficit is above 3% of GDP. The agreement struck in Brussels late Friday between representatives of the European Commission, the European Parliament and member states in the EU Council still needs formal approval by national governments and the EU assembly to become law.