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The chair of the European Fiscal Board – which advises the EU Commission on fiscal policy – said Wednesday that it would be "undesirable and dangerous" for the EU to return to an unreformed Stability and Growth Pact when the current Escape Clause expires in 2023.
The key element of reform of the rules would be to move to a more realistic pace of debt reduction. Any new rule for reducing debt in high-debt countries needed to be "effective, implementable and credible in the markets," Niels Thygesen said at a press briefing.