Growing sovereign debt within in European Union turns out to be an increasing burden for the entire EU and the Euro. Thus Europe urgently needs long-term fiscal policies designed to reduce government debt to manageable levels and at the same time to promote a stable kind of economic development.
A new sovereign debt rule
»Maastricht 2.0« is a proposal for a new sovereign debt rule which meets both demands. Unlike the Fiscal Compact’s European debt brake, »Maastricht 2.0« takes account of national particularities. Furthermore »Maastricht 2.0« gives more time to the countries in order to reduce their debt. Thus the new rule does far more to promote economic growth than the European debt brake. By 2030, real gains in growth will amount to more than 450 billion euros more than the outcome that would presumably be obtained under the European debt brake.
Downloads: Maastricht 2.0