Reform of the European Union’s fiscal rules, which set broad limits on how much debt EU countries can amass, appears stuck. Germany, which wants to have confidence that high debts will be tackled, is at odds with France and Italy, which prefer more leeway, especially to enable public investment. However, on one element of the rules there is consensus: the excessive deficit procedure (EDP). An EDP can be triggered if a country’s deficit goes above a 3% of GDP threshold, or if government debt rises above 60% of GDP. Countries subject to an EDP must fix the problem through a programme of fiscal adjustment. But the EDP rule has been suspended since 2020 because of the need for government spending in the wake of the COVID-19 pandemic. […]