The European Fiscal Board warns repeated exceptions are weakening EU debt-rule credibility as government debt is forecast above 84% of GDP in 2026.
Repeated exceptions and discretionary enforcement are weakening the credibility of the European Union's new fiscal rules, the European Fiscal Board warned. The watchdog said no comply-or-explain statements were issued and only Bulgaria faced a new excessive-DeficitDeficit refers to shortfall in the balance of trade, balance of payments, or government budgets. The term belongs in Level 7 because it helps connect macro conditions, policy, o...Read More procedure despite countries missing recommended spending paths. EU government debt rose to 82% of GDP in 2025 from 81% and is forecast by the European CommissionThe European Commission is the European Union's executive institution. Among other responsibilities, it proposes legislation, implements EU policies, manages programs, and...Read More to exceed 84% in 2026, increasing scrutiny as defence, energy-security and debt-servicing costs rise.",
