Government spending cuts in the EU are set to hit investment and growth at a time when the region is already struggling to keep up with the US, economists have warned.
After years of fiscal excess during the Covid-19 pandemic and the energy crisis sparked by Russia’s invasion of Ukraine, Brussels has reinstated rules requiring member states to rein in budget deficits to a maximum of 3 per cent of GDP. The end goal is to lower government debt to 60 per cent of GDP.
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