According to Brzeski, many countries want more flexibility because “there is still a lot of urgency for investment”. And there are high debts. Even the European Commission believes that these rules are not flexible enough, but the Commission cannot limit itself to adjusting them because to modify that 3% budget deficit and 60% public debt, the European treaty must be modified. “So it’s more about the implementation of these fixed rules.”
‘The European Commission can’t just change those rules’
German fear
Germany in particular does not see too much flexibility and insists on applying the rules, but that has to do with the internal situation in Germany. Besides the fact that Germany is conservative by nature. Germany wants a strong euro, says Brzeski, and Germany is afraid of weak fiscal discipline in southern Europe and a possible return of a euro crisis like the one of 2010, 2012.
Furthermore, German Finance Minister Christian Lindner is under pressure because he “will never win any more state elections” and therefore calls himself a tough guy, which in turn is well received by his supporters.
It should be noted that Lindner also allows countries more flexibility and wants to give them a little more time to sort things out, but wants to make it clear that tax rules exist for a reason.