EU fiscal reforms will reinforce regional divergence

Significance Though parameters have changed and national starting positions are recognised more, the reforms are not extensive. Debt and deficit targets remain. Indebted countries, principally Italy, will be required to run budget surpluses to reduce their public debt quickly. Impacts The reforms will likely be approved by the European Parliament without significant amendments. Lower spending capacity could reduce public support for economic and military assistance for Ukraine. France will likely need to implement more fiscally cautious budgets, potentially boosting the appeal of the far right.