Reactivation of the fiscal rules of the European Stability and Growth Pact and, in Germany, the debt brake laid down in the Basic Law is scheduled for 2024 and 2023 respectively. In the EU and especially in the Eurozone, this would lead to fiscal austerity on a massive scale following very loose budgetary policies during the Corona pandemic. The current fiscal policy framework has been heavily criticised by many actors for years. It is far too complex, in many respects based on arbitrary assumptions, it is pro-cyclical and exerts a drag on public investment. This study examines twelve proposals for reforms of the Stability and Growth Pact, including six that could bring about substantial improvements (including one proposal by the author of the study). Parallel to this, proposals for reforming the German debt brake are examined. Germany plays a key role in the reform of the European fiscal rules. The German government has recently presented its position in this regard. Fiscal policy plays a central role for the future of the EU and the Eurozone, especially in view of the multiple challenges posed by the climate policy transformation, digitalisation and the reorientation taking place in the area of defence policy.