What the EU debate over fiscal reforms means for Greece

Since 2020, the EU has suffered two large shocks – the pandemic and Russia’s invasion of Ukraine – that have increased longer-term fiscal pressures through higher debt and higher public investment needs. As the EU looks to address these challenges, its members are locked in a debate over how to adapt its long-standing fiscal rules to the economic reality that has emerged. Germany is leading the camp that believes the proposed rules are too loose when it comes to tackling public debt, while France and others argue they are too strict.

Maria Demertzis joins Thanos Davelis to look at these new fiscal challenges facing Europe, break down the debate over how to reform the EU’s fiscal rules, and explore what this means for countries like Greece. Demertzis is a Senior fellow at Bruegel and a part-time Professor of Economic Policy at the School of Transnational Governance at the European University Institute in Florence.