In February 2020, the European Commission presented its Communication reviewing the EU’s Economic gov-ernance framework. The revision of the framework will be undertaken by the EU’s Member States. The re-view includes an assessment of how the EU’s fiscal rules have worked so far but does not make any recommendations. Commission’s main findings are in line with the views presented by many others and, therefore, a consensus on the main revision needs of the EU’s fiscal framework seems to have emerged.
Notwithstanding the agreement on the flaws of the framework, there is less agreement on the ways to address them. Over the years, many instances have put forth proposals on how to correct the identified flaws.
The purpose of the proposed background report for Finland’s Economic Policy Council is twofold. First, it briefly presents the main problems identified in the EU’s fiscal framework. Second, it summarizes the relevant proposals made recently to address the identified challenges, emphasizing the implications for the national fiscal framework.