Thread by @zoe_institute

The political momentum for reforming the #EU 🇪🇺 #fiscal framework is larger than ever. We are excited to share our freshly published feasibility & impact analysis of the reform proposals with you: zoe-institut.de/en/publication… (1/15)➡️

Recovering from the #pandemic and simultaneously achieving #environmental, #social and #economic goals requires large amounts of public funding and therefore ample #fiscal flexibility for #EU member states. (2/15)

And with all eyes on #COP26 this week, and the discussion about the scale and pace of investment for #ClimateAction high on the agenda, the discussion about how to create the fiscal flexibility for investments such as these has never been more timely (3/15)

The current #EU #Fiscal framework was designed in the 90’s for different #Economic circumstances, it is outdated and not fit for today’s pressing #challenges (4/15)

For example, we now know that the #austerity in the aftermath of the #financial & #economic #crisis caused a double-dip #recession. And the divergence between #EU member states and anti-EU populist narratives that followed have posed serious threats to the EU (5/15)

Thus, the #EU fiscal framework must be reformed. The recent relaunch of the economic governance review by the @EU_Commission highlights the timeliness, importance and urgency of this. Read more here: ec.europa.eu/info/business-… (6/15)

With many important players such as @vonderleyen and @PaoloGentiloni calling for reformed fiscal rules, the #political momentum for reforming the #EU #fiscal framework is larger than ever (7/15)

While many #reform #proposals have been brought forward, a clear structuring of these proposals has been missing, until now. By clustering similar proposals, we break down the total number of proposals to 12 and classify them into 3 categories (8/15)

Additionally, a thorough assessment of the #feasibility & #impact of the various proposals was missing to advance and inform the debate. Therefore, our report analyses the #political & #technical feasibility as well as the qualitative & quantitative impact of the proposals (9/15)

Assigning a score of 1-5 as well as different weights for each criterion allows us to estimate and plot scores for #political and #technical feasibility... (10/15)

… as well as for #quantitative and #qualitative #impact of different #proposals for reforming the fiscal framework. (11/15)

Aggregating #political & #technical #feasibility as well as quantitative & qualitative impact generates overall feasibility and impact scores for each proposal. As we elaborate in our report, the proposals should be considered complementary, not competitive to each other (12/15)

We also want to emphasize that ambitious & impactful proposals often come at the expense of lower feasibility in the long-term. Nevertheless, they should remain central to the debate as they often provide sophisticated long-term #solutions (13/15)

Some of the reform proposals we have analysed are picking up interest with MS. For example, in the #Netherlands , #Rutte’s party has suggested exceptions for #climate investment and in #Germany special purpose vehicles are intensively discussed: bloomberg.com/news/articles/… (14/15)

Now that the public consultation on the review of the #EU #economic governance is open, it is time for a lively #debate on the reform of the EU fiscal framework. The future of #Europe depends on it: ec.europa.eu/eusurvey/runne… (15/15) 🔚

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