(Bloomberg) --
The European Union’s new debt rules aim to be tough enough to spur fiscal rectitude, but not so tough as to be unachievable. Running current financial plans through Bloomberg Economics debt models suggests that neither France, Italy nor Spain are anywhere near complying with the EU’s latest demands. The takeaway: adhering fully to the new regulation is likely to require consolidations that will be extremely difficult to deliver. The new framework is an improvement on the last, but the most stringent elements are likely to undermine its credibility.
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