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  FISCAL BATTLE, THE SOUTHERN CAMP: The debate on Europe’s future fiscal governance is picking up pace. On Wednesday, Playbook reported on German Chancellor Angela Merkel’s position in favor of “sound fiscal policy,” coming on the heels of similar statements from so-called frugal countries, including Austria and the Netherlands. The opposing camp is also being vocal, with Nadia Calviño, Spain’s minister in charge of economic affairs and digitalization, saying the bloc’s rules “were not fit for purpose before the pandemic hit us.” She told me in an interview at POLITICO’s Competitive Europe Summit on Wednesday that “it would be wise to review these rules before we go back to the normal situation” of reapplying them in 2023.

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