Marco Buti and Nicolas Carnot, European Commission
Several criticisms of the current fiscal strategy in the EU have recently been forcefully expressed. In this brief, we examine these criticisms, and provide some clarifications and responses. We recall that large adjustments are needed in most economies to restore sustaina-ble fiscal positions, not because of the arbitrary will of the markets or of EU institutions.
ECFIN economic briefs are occasional working papers by the European Commission’s Directorate-General for Economic and Financial Affairs which provide background to policy discussions.