Tax & Spend
EU Debt Rules Can Only Work With Political Support, IMF Says
- Warning follows deficit reprimands for France, Italy, others
- Fiscal framework credibility is key, Finnish official says
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New European Union fiscal rules will only work if countries with high levels of debt and wide budget deficits make a real material and political effort to get their public finances in order, the International Monetary Fund said.
“The new EU economic governance framework will require significant fiscal adjustment in many member-states as well as sustained political support to be implemented as envisioned,” the IMF said in a report published Thursday.