Feasibility and impact of reform proposals for the EU fiscal framework

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  1. Source with metodology and details of each proposal (PDF): [Fiscal Policy for a Thriving Europe – A Feasibility and Impact Analysis of Fiscal Policy Reform Proposals](https://zoe-institut.de/wp-content/uploads/2021/10/ZOE_Policy_Brief_Feasibility_211029.pdf) by the [ZOE-Institute for future-fit economies](https://zoe-institut.de/)

    Executive summary:
    >The current EU fiscal framework is not fit for purpose to cope with
    >today’s challenges: unprecedented levels of investments are needed
    >to achieve environmental, societal, and economic goals and for a
    >sustainable recovery after the COVID pandemic. Public funding
    >plays an important role to navigate through this transition and build
    >resilient societies. However, the fiscal flexibility of Member States
    >is constrained by the EU governance framework, which requires EU
    >governments to adhere to strict fiscal rules.
    >
    >After the 2008 financial crisis, austerity policies in the EU led to a
    >double-dip recession, the EU economy recovered much slower than
    >others, unemployment rose massively in many parts of Europe and
    >triggered the euro crisis. Austerity measures have contributed to
    >anti-EU sentiment and enabled populist sentiments and movements
    >to rise. The risk of instability and divergence of Member States
    >through austerity must now be avoided.
    >
    >The political momentum for reforming the EU fiscal framework
    >is larger than ever. In this lively and critical debate, many reform
    >proposals have been put forward, however, reform proposals tend
    >not to be responsive to the political sensitivities and the technical
    >feasibility at the same time.
    >
    >This report fills a gap as it provides a structured overview of the
    >reform proposals for the EU fiscal framework and a comprehensive
    >assessment of their feasibility and impact. It assesses the political
    >feasibility of the reform proposals, identifies what changes
    >in EU legislation would be required to implement the proposals and
    >highlights the administrative hurdles that implementation could
    >entail. In addition, the proposals are also assessed in terms of the
    >potential additional fiscal flexibility they would generate and whether
    >the proposals are tied to green and social objectives as well as
    >investment.
    >
    >By comparing the different goals of the proposals and identifying the
    >different parts of the existing regulations targeted by the proposals,
    >the report shows which reform proposals can complement each other
    >and which are mutually exclusive. It thus provides a solid basis for
    >decision-makers to facilitate comparison and discussion of the existing
    >reform proposals.

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