In its annual report presented on Wednesday 10 November, the European Fiscal Board recommends limiting the political wiggle room surrounding the Stability and Growth Pact’s general escape clause by streamlining its activation, maintenance and deactivation procedure.
The activation of the general escape clause in the spring of 2020 (see EUROPE B12452A1) was justified in order to deal with the health emergency caused by the Covid-19 pandemic, the Board believes. “However, its...