A N A LY S I S ECONOMY AND FINANCE REFORMING THE EUROPEAN RULES Andrea Boitani and Roberto Tamborini December 2021 • New fiscal policy measures are necessary to bring about a stable and sustainable economic recovery. • The old fiscal rules have become useless, as they only take effect in the case of high deficits and are thus no longer sustainable with the pandemic at the latest, as they lead to higher instability. • A reform of the fiscal policy rules must in any case take into account the changed situation also caused by the pandemic.