EU Finance Ministers Agree on Looser Fiscal Rules

New agreement allows more time for countries to manage debts and deficits, marking a win for southern countries led by France.

EU finance ministers have agreed on proposed changes to the bloc's fiscal rules, allowing more leniency and time for countries to manage their debts and deficits.
The new rules set minimum amounts of average deficit and debt reduction a government must observe, satisfying the frugal camp of EU countries led by Germany.
The agreement is seen as a victory for the mostly southern countries led by France, who have been advocating for more flexibility in the fiscal rules.
The new rules are designed to be more realistic and effective, combining clear figures for lower deficits and falling debt ratios with incentives for investment and structural reform.
The agreement still needs to be adopted by the countries and negotiated with the European Parliament.