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Thursday, December 17, 2020

Eurozone reform—it’s not just the fiscal rules –by Willi Koll

The Covid-19 pandemic has eclipsed the general overhaul of the economic-policy framework of the European Union and the eurozone initiated in February by the European Commission. Comprehensive reform of economic governance remains nevertheless urgent and indispensable.

Reform of the Stability and Growth Pact (SGP) and the Regulation on the Prevention and Correction of Macroeconomic Imbalances (MIP), within the framework of the ‘six-pack’ and ‘two-pack’ of the European Semester and other regulations, should again be at the centre of discussions, as soon as—at the latest—the consequences of the pandemic have been dealt with.

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