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Licensed Unlicensed Requires Authentication Published by De Gruyter June 12, 2023

Debt Sustainability in the Emerging New EU Fiscal Framework: A Major Change

  • Cinzia Alcidi ORCID logo EMAIL logo
From the journal The Economists’ Voice


If agreed, the new European Commission legislative proposals on the reform of the fiscal framework will represent a major change. First and foremost debt replaces budget deficit as central variable, and debt sustainability assessment becomes a pivotal concept. It allows to introduce a multiannual approach and more flexible framework disconnected from numerical rules, which, in principle, gives member states greater ownership but also greater responsibility for their choices. It can only work if member states recognise that debt sustainability assessment is a risk-management tool that has to be taken seriously.

JEL Classification: E61; E62

Corresponding author: Cinzia Alcidi, Department of Economic Policy, Centre for European Policy Studies, Place du Congres 1, Brussels, 1000, Belgium, E-mail:


Alcidi, C., and D. Gros. 2018. “Debt Sustainability Assessments: The State of the Art.” in-depth analysis requested by the European Parliament’s ECON Committee. in Google Scholar

European Commission. 2023a. “Proposal for a Regulation of the European Parliament and of the Council on the Effective Coordination of Economic Policies and Multilateral Budgetary Surveillance and Repealing Council Regulation (EC) No 1466/97.” in Google Scholar

European Commission. 2023b. “Debt Sustainability Monitor 2022.” Institutional paper 199|APRIL 2023. in Google Scholar

Received: 2023-05-02
Accepted: 2023-05-17
Published Online: 2023-06-12

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