Fiscal Policy - a new economic paradigm?

A year ago, as the catastrophic consequences of the Covid-19 pandemic began to wreak havoc across Europe, the European Commission suspended the stability and growth pact (SGP), a set of rules designed to ensure that countries in the EU pursue sound public finances and co-ordinate their fiscal policies. And in Spring earlier this year, the commission announced the rules would not be reinstated until 2023. The suspension of the fiscal rules due to the pandemic provides a welcome opportunity to rethink them. Reform may be needed to make sure we come out of the Covid crisis stronger than when we went into it. But the direction this should take requires that we first understand the role that fiscal policy has in the economy - and what role it could have. Is it time to change the rules? Is it time for a paradigm shift in the way fiscal policy is conducted? This event aims to discuss these issues and more.

Introductory remarks:Paschal Donohoe, Minister for Finance and President of the Eurogroup

Keynote: Gilles Mourre, Head of Unit “Fiscal Policy and Surveillance” in the Directorate General for Economic and Financial Affairs

Panel:

• Gregory Claeys (Bruegel)
• Christian Odenhaul (CER)
• Orsola Constantini (UNCTAD)
• Özlem Onaran (University of Greenwich)