The EU is currently not able to deliver on its objectives: raising the standard of living throughout the Union while respecting the environment. Without a new economic governance this fragile Union risks falling prey to a new debt crisis that destabilises the monetary union and increases tensions between and within Member States. In a new SFL Position Paper, we formulate recommendations for a new Sustainable Fiscal Pact for Europe that enables all Member States to reform and invest in an inclusive way in the productivity and sustainability of their economy.

There are five elements that need to be part of this new Sustainable Fiscal Pact for Europe: increasing the debt limit, country specific expenditure rules based on national reform and investment plans, greening the Macroeconomic Imbalances Procedure, EU transition funds and strengthening governance and democratic accountability.