Finance Watch deconstructs what it calls the “myths” surrounding European fiscal rules and makes proposals to reform the Stability and Growth Pact in a report published on Monday 12 July.
Instead of focusing on an arbitrarily chosen ratio of public debt to GDP, the EU legislator should direct its attention more towards the medium-term sustainability of debt by analysing criteria such as the level of income of a Member State, the evolution of interest rates and the composition of a...