Implementation of the new EU economic governance

Over the past few years, various shocks have affected EU economic growth and public accounts, raising many issues and prompting significant policy responses. Does the new EU governance framework deliver on its intended purpose and help Italy address its public finance problems? I look at Italy’s Medium-Term Fiscal-Structural Plan and whether it allows budgetary consolidation while enhancing economic growth. My conclusion is that, despite all the criticism, the new economic framework substantially improves the previous approach and will help Italy strengthen its public finances and reduce its debt. However, in itself, it is no guarantee of success.