Analysis
Economy & Tech
Why Hasn’t Russia’s Wartime Economy Gone Bankrupt? Fuelled by Stimulus, Sustained by Uncertainty
31 January 2025
Central and Eastern European countries face the dual challenge of adhering to renewed fiscal safeguards from the Stability and Growth Pact while addressing critical geopolitical and economic imperatives. Leaning into strategic transnational initiatives to mobilise private capital may help.
As the reformed Stability and Growth Pact (SGP) comes back into effect after three years, many EU member states will need to square the circle, balancing the renewed fiscal safeguards with critical investments.
Currently, eleven members, including France and Italy, are in violation of EU limits, having exceeded the 3% of GDP budget deficit limit.
Moreover, eurozone countries could face fines if they fail to make the necessary adjustments, while non-euro members could face reputational damage.
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