Position paper EU fiscal governance framework
Economic and financial stability of the EMU is best served by simple fiscal rules that are geared to the medium term, such as the multiannual expenditure framework that is applied in the Netherlands. Such a framework should be in line with a long-term objective for debt sustainability. It is therefore important to choose a debt target that keeps the financial risks manageable and also represents a debt reduction pathway that is both feasible and credible for Member States with excessive debt levels. Effective enforcement is essential, in this respect.