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EU Fiscal Rules Close to Agreement
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EU finance ministers are close to reaching an agreement on new fiscal rules to address COVID-19 debt surge. The reform aims to ease fiscal consolidation requirements, offer tailored debt reduction paths, and incentivize public climate change mitigation. However, disagreements remain over how to sustain investment when budget deficit exceeds EU limits, with a potential meeting in December. The new rules' approval by the current European Parliament is crucial, impacting the euro zone's fiscal stance for the upcoming year.
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How might the new fiscal rules impact the euro zone's fiscal stance for the upcoming year?
In what ways could the reform of EU fiscal coordination affect bond investors and the credibility of EU fiscal coordination?
What are the potential implications of the disagreements over how to sustain investment when budget deficit exceeds EU limits?
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