EU Finance Ministers Reach Compromise on Fiscal Rule Reforms

The European Union has reached a preliminary deal to reform its fiscal rules after Germany and France found a compromise. The reform keeps the 3% deficit and 60% debt targets but introduces changes to how they are met. Each member state will design a mid-term fiscal plan to reduce deficits and put debt on a downward path. The reform includes numerical safeguards based on debt and deficit levels, with automatic procedures for countries exceeding these thresholds. The agreement also includes provisions for a "resilience margin" and a transition period to cushion the impact of rising interest rates. The reform still needs to be negotiated with the European Parliament.