ASE professor Roel Beetsma, a member of the European Fiscal Board (EFB) advisory body, was involved in drafting a recommendation for the European Commission.
Commission President Jean-Claude Juncker asked the EFB to assess European fiscal rules as part of an ongoing comprehensive review of the EU fiscal framework.
The EFB issued the report with its recommendations on 11 September. The report was subsequently presented to the Ministers of the Economic and Financial Affairs Council on 14 September. The EFB stated that the fiscal rules in the Eurozone should place more emphasis on reducing national debt and ensure long-term sustainability in this respect. According to the advisory body, the fiscal rules are too complex and are counterproductive when it comes to fiscal governance.
Other recommendations included not including certain growth-stimulating investments in the expenditure ceiling, and revising how the sanctioning mechanism operates when regulations are violated.
The full report can be read on the European Commission website.