Faced with the economic uncertainty for the European Union caused by the Russian invasion of Ukraine, the European Commission recommended, on Monday 23 May, that the general escape clause of the Stability and Growth Pact, in place since the spring of 2020 at the time of the outbreak of the Covid-19 pandemic (see EUROPE B12452A1), is maintained until the end of 2023.
“We are facing heightened uncertainty and strong downside risks to the outlook, so we propose maintaining the general escape...