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Jan, Priewe. (2021) Reforming the Fiscal Rulebook for the Euro Area – and the Challenge of Old and New Public Debt.
In: IMK Studies. RePEc:imk:studie:72-2021.
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Besides the eight proposals reviewed here, hints to a few other – contrasting – proposals are necessary. The German Bundesbank (2017) has been concerned about too lax fiscal rules since the flexibility clauses were introduced in 2015 by the European Commission. The authors plea for a return to the pre-2015 rules of SGP and Fiscal Compact and call for stricter enforcement rather than changing the rules. A team of authors from the ECB (Kamps et al. 2019) have a more critical view of the EU fiscal framework. Procyclicality and complexity of the rules are criticised, and the heterogeneity of MS is precisely recognised, yet proposals remain vague. Some authors seem to believe that the shortcomings of the measurement of potential output and structural balances could be solved by technical reforms using different measurement methodology deviating from the production function approach used by the
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