On April 23, 2024, the European Parliament passed reforms to the EU stability pact, setting fiscal rules for member nations.

The reforms uphold the 60% debt and 3% deficit limits of GDP but include tailored debt reduction requirements for highly indebted countries.

Country-specific situations will be considered, offering more flexibility in managing national finances and investments.

Stricter debt reduction mandates are set for countries with high debt, like France, to curb their debt growth more effectively.

The EU Commission will factor in rising interest payments when assessing fiscal adjustment efforts.

Final approval from EU member states is anticipated, with expectations that it will be a formality.

The reformed stability pact is expected to be enacted on April 30th, granting countries additional time for fiscal adjustments.