Stefano Micossi exposes that new framework would give the Commission explicit control over managing excessive debts in euro area countries. Micossi suggests instead that debt-reduction plans should be decentralised and the Commission should retain independent powers for surveillance and correcting large policy errors.
"There are two aspects in the orientations where in my view the Commission has overstepped its proper role. First, the orientations seek to achieve an effective common policy to put a brake on excessive public debts, which is where the current Stability and Growth Pact (SGP) framework has notably failed over the past decade (...)
Second, the Commission has conceived the new SGP as an all-encompassing integrated policy framework covering, together with debt sustainability, the priority reform and investment commitments as well as the country-specific recommendations issued in the context of the European semester."
This piece was published on 23 February 2023, continue reading it here.