Over the last two years, global economy – and the EU’s in particular – has been shaken by two “black swans” in a row: Covid-19 and the war in Ukraine. After the impressive economic rebound in 2021, the conflict has already taken its economic toll: growth forecasts for 2022 and 2023 are heavily revised downwards, public debts are skyrocketing, and inflation is at 30-year high, and likely to keep rising. To escape the fate of a EU financial crisis, the reform of the EU fiscal rules can no longer be postponed. How to reform the Stability and Growth Pact without harming economic prospects and the green/digital transitions? After ‘Next Generation EU’ and at a time of new security challenges, is a permanent EU common debt really at hand?
In today’s complex scenario, global challenges need to be addressed with clear-cut and streamlined policy responses. ISPI Policy Paper is a new product on key international issues exploring ‘what’s at stake’ and viable policy options.
Harald Benink, Tilburg University and European Shadow Financial Regulatory Committee
Massimo Bordignon, Member of the European Fiscal Board
Leonardo D’Amico, Harvard University
Francesco Giavazzi, Bocconi University
Veronica Guerrieri, University of Chicago
Guido Lorenzoni, Northwestern University
Marcello Messori, LUISS University
Niels Thygesen, Chairman of the European Fiscal Board
Charles-Henri Weymuller, Harvard University