Reverting to fiscal discipline

The European Union member-states, including Greece, are returning to fiscal discipline after four years of the Stability Pact's suspension, due to the Covid-19 and energy crises. This is according to the agreement reached on Saturday between the European Council and the European Parliament on new EU fiscal rules.

Although the new rules, which will apply from 2025, contain elements of flexibility compared to the existing pact, they are still restrictive at a time when the European economy is struggling to escape stagnation, which has been a point of criticism from some economists.

This is mainly the result of the interventions of Germany and other "frugal" states in the initial proposals of the Commission, which had the effect of setting quantitative targets for reducing deficits and debt.

A source from the Ministry of Finance explained on Monday that the new...