The pandemic and subsequent downturn have seen EU countries deploy unprecedented fiscal support, while the EU as a whole complemented this with an architectural innovation in the form of the Next Generation EU fund. As European economies begin to recover, is it time to return to pre-pandemic fiscal rules or is it time to reform them? If yes, then what should be changed and how?

Bruegel’s Deputy director Maria Demertzis takes a deep dive with Senior fellow Zsolt Darvas and Rolf Strauch, Chief economist of European Stability Mechanism.