EU national budgets: flexibility and enforcement must go hand in hand

Following yesterday’s communication from the EU Commission on the Stability and Growth Pact (SGP), Markus J. Beyrer commented: 'We believe the EU Commission has taken an important step towards increasing the credibility and effectiveness of Europe’s fiscal rules by providing increased clarity on how it will interpret the Stability and Growth Pact.“We agree with the EU Commission’s approach to use the flexibility within the SGP that takes account of Member States’ efforts to increase long-term growth through productive investment and ambitious structural reforms in assessing their fiscal consolidation paths. But increased flexibility must be accompanied by proper enforcement to ensure Member States undertake the fiscal consolidation and structural reforms necessary to put Europe back on a path of strong and sustainable growth.'