The fiscal debates set to dominate European politics – POLITICO
Mujtaba Rahman is the head of Eurasia Group’s Europe practice and a columnist for POLITICO Europe. He tweets at @Mij_Europe.
There are three fiscal debates set to dominate European politics this year.
The first is over how the European Union responds to the United States’s Inflation Reduction Act (IRA).
Here, a reform to the EU’s state aid framework is on the cards, but many member countries are pushing for a two-pillar approach that would also see the bloc undertake fresh common borrowing. Otherwise, they argue, the relaxation of state aid rules will disproportionately benefit German industry, which would, in turn, undermine the core tenet of the bloc’s single market — the so-called level playing field.
In this regard, European Commissioner Thierry Breton has pro...
