Economics
Debt-Rule Showdown Will Shape Europe’s Economy for Years to Come
Some call the Growth and Stability Pact a relic from another era, but “frugal” nations are still wedded to it.
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Europe’s policymaking class is readying itself for a clash that may reverberate for years to come.
The huge public-borrowing binge needed to fund spending during the Covid-19 crisis is forcing a rethink of the European Union’s rules governing debt and deficits, exposing a political fault line over economic theory.