When and How to Deactivate the SGP General Escape Clause?
In-Depth Analysis
11-12-2020
Based on a brief assessment of the current EU fiscal framework, the paper discusses when and how fiscal surveillance should be enacted again, and investigates possible options for reform. The general escape clause should be lifted as soon as epidemiological conditions allow for economic activity to normalise, probably by 2022. We propose a transitory arrangement if the discussion on a broader reform of the fiscal framework remains inconclusive while the general escape clause is in force.
In-Depth Analysis
External author
Klaus-Jürgen GERN Stefan KOOTHS Ulrich STOLZENBURG
About this document
Publication type
Policy area
Keyword
- anti-crisis plan
- coronavirus disease
- economic conditions
- economic convergence
- economic policy
- economic recession
- ECONOMICS
- epidemic
- FINANCE
- financial stability
- financial supervision
- fiscal policy
- free movement of capital
- health
- monetary economics
- public finance and budget policy
- SOCIAL QUESTIONS
- stability pact
- stability programme
- taxation