Abstract The European fiscal rules reformed in 2024 give Member States greater responsibility for sustainable budgetary policies. A key element is a multi-annual expenditure path based on country-specific sustainability analyses. However, the transition to the new rules was rushed, with limited transparency and multilateral control. The confidential treatment of reference scenarios in the initial phase and delays in applying excessive deficit procedures undermine the coherence and credibility of the new framework. While the reform is conceptually designed to promote greater national responsibility and long-term stability, it remains uncertain whether it can achieve its objectives without effective enforcement mechanisms and clear rules on accountability.
Janeba et al. (Sun,) studied this question.