The Stability and Growth Pact (SGP), which sets out the framework for European economic governance, aims to ensure budgetary coordination and discipline across eurozone member states. Its fiscal rules have been suspended since 2020 due to the economic impact of the Covid-19 pandemic and the war in Ukraine but will come back into force by 2024. As the existing SGP is in dire need of reform, the European Commission has presented its orientations for a revamped fiscal framework last November. While member states have signed off on the overall reform direction, major disagreements remain ahead of the Commission’s legislative proposal expected for April 2023.
What are the main stumbling blocks for the SGP reform in the coming months? Which compromises can help to overcome potential blockades from specific member states? How to square the tensions between debt sustainability and climate sustainability? What are the next steps in the reform process and what fiscal policy changes can we expect for 2024?

To discuss these questions and more, we have the pleasure to welcome Andreas Eisl, Researcher on European Economic Policy at the Jacques Delors Institute.