EU Commission pitches loosening fiscal rules for ‘new reality’

The EU Commission on Wednesday (9 November) presented long-awaited proposals on redrawing fiscal rules for the bloc — after a decade of austerity left European countries exposed to the new challenges of energy and price hikes.

The fresh rules, seemingly inspired by the Covid-19 recovery fund structure, would have governments negotiate a four-year debt reduction path with the commission and then have EU ministers give their green light to it.

Those four years could be extended to...