The European Stability Pact undergoes its fourth "reform" with the approval of the EU Parliament, marking a significant development in the ongoing debate over fiscal policies aimed at ensuring moderate levels of government debt among member states.

Once again, advocates for loosening the Maastricht deficit thresholds have prevailed, viewing them as unreasonable constraints rather than prudent measures safeguarding the market economy and monetary union. The revamped pact introduces a plethora of new exceptions and grants the EU Commission broad discretionary powers, obscuring which member states are evading fiscal solidarity through risky borrowing.

The new provisions relieve decision-makers from being held accountable to a critical public opinion. While the EU proudly proclaims itself as a community based on the rule of law, laws like the Stability Pact, which lack binding force, undermine its credibility.