In 2021, despite the strong economic recovery spurred by the lifting of anti-Covid-19 health measures, some EU Member States, especially those with already high debt-to-GDP ratios, increased public spending further “well above rates that can be expected to be sustainable in the medium to long run”, with some of this expenditure being introduced on a permanent basis, the European Fiscal Board notes in its 2021 activity report published on Wednesday 26 October.
Such a situation, made...