Following the example of the ‘European Fiscal Board’(see EUROPE B13665A27), on Monday 7 July the Eurogroup estimated that in 2026 the fiscal stance at euro area level should be restrained if an increase in national spending in the defence sector is excluded.
“Excluding increased defence spending, fiscal restraint remains appropriate. We expect a broadly neutral fiscal stance in the euro area in 2026, which seems overall appropriate in the current economic environment”, say the...