The European Commission wants to be in charge of new fiscal rules

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The European Commission wants to be in charge of new fiscal rules
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Ursula von der Leyen wants to make the European Commission that she runs a more political arbiter of the bloc’s fiscal rules

Save time by listening to our audio articles as you multitaskThe idea is simple enough. A group of 19 independent countries needs a few guardrails if they are to share a currency. Previous incarnations proved ineffective, and in part even misguided. There is widespread consensus that the increasingly complicated rules need an update.

The commission’s latest proposal for the new-look fiscal rules builds on this newly gained standing. Brussels would set out a path for net government expenditure that is reasonable and brings down debt levels over time. This part is a simplified version of the previous debt-reduction targets, which have become unrealistic for highly indebted countries. National governments would then send comprehensive plans back to Brussels on how to reach that path.

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