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EU too soft on fiscal rules, risks from high-debt states - auditors

Reuters  |  BRUSSELS 

By Francesco GuarascioBRUSSELS (Reuters) - The European Commission has applied fiscal rules with excessive flexibility, making them ineffective in reducing debt in highly indebted states such as Italy, auditors said on Thursday, warning of risks of spillovers from negative market reactions.To address widespread concerns over the future of the euro, the European Union, in moves led by Germany, tightened its fiscal rules during the peak of the bloc's debt crisis in 2010-2012. It imposed bold economic adjustment targets on member states, prompting criticism by many economists for the resulting ...

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First Published: Thu, July 12 2018. 16:08 IST