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An important vulnerability of the EU economy is high public debt levels. This column proposes revisions to the EU fiscal rules to stimulate debt reduction, which would create budgetary room for stabilisation and growth-promoting spending and also support growth convergence among member states. Climate investment should not interfere with the fiscal rules but be financed

Noord hollandRabo carbon bankEuropean parliamentEuropean commissionUniversity of amsterdamJournal of international moneyFrench council of economic analysisEuropean economy expert groupEuropean unionDutch independent european economy expert groupEuropean fiscalGrowth pactFiscal boardEuropean fiscal boardEuropean stability mechanismCohesion funds