A decade after the eurozone crisis and a monetary catharsis later, a new crusade for fiscal prudence is underway. Fiscal purists would impose the fiscal rulebook exactly as they left it off before Covid hit and governments racked up unprecedented debt to keep their economies afloat. If they have their way, the righteous would nail their peers on the cross of austerity for the sake of fiscal piety. In the fundamentally altered economic and monetary context, this venture stands to gain nothing, yet risks inflicting serious economic and political consequences onto the entire EU. Ultimately, this will be a political conversation about the economic future of the Union, which cannot be rationally solved without the participation of its monetary authority – the European Central Bank.
Read Anna Peychev‘s article here: The new crusade for fiscal prudence