"After the COVID-19 crisis, public debts in euro area Member states will stand on average at 100% of GDP. EU fiscal rules were suspended during the crisis and must be reformed. This will be under discussion in 2022. Section 2 discusses the principle of fiscal rules, especially in the EU. Section 3 analyses various reforms proposals. Some consensus seems to be emerging on public expenditure rules, where public expenditure would need to grow less rapidly than nominal GDP, so as to bring the public debt-to-GDP ratio down to 60%. This rule does not allow for satisfactory macroeconomic stabilization, has no guaranteed longer-term, and does not respect national fiscal policies autonomy. In Section 4, we make a proposal inspired by functional finance. Public debts of euro area member states should be guaranteed. Member States should be able to run the fiscal policy relevant in their macroeconomic situation, while fulfilling the inflation target set by the ECB. Member States should be requested to change their fiscal policy only if the latter is harmful to partner countries."

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