STUDY ECONOMY AND FINANCE HOW TO DEMOCRATISE EUROPE’S FISCAL RULES Proposals for Reforming the EU‘s Economic Governance Package Mark Dawson September 2023 The European Commission’s proposals to reform the EU fiscal rules carry important democratic deficits which jeopardise also their vital po­licy targets but could be ad­dressed within the EU treaties. The study identifies three main flaws which undermine national ownership; risk une­qual treatment and neglect common European interests; as well as inadequately insti­tutionalise the stated objec­tive to balance fiscal, social, and ecological sustainability. Formal involvement of nation­al Parliaments and civil society in adopting national structural plans; granting the European Parliament co-decision rights in the Preventive Arm; and in­tegrating equality and climate institutions into fiscal planning could remedy these deficits.