EU countries agree on compromise for overhaul of bloc’s fiscal rules

BRUSSELS (AP) — European Union finance ministers have sealed a deal to reform the 27-nation bloc’s fiscal rules after France and Germany finally adhered to a compromise. EU countries had been negotiating for months a reform of the EU’s rules limiting debt and deficits for member states, known as the Stability and Growth Pact. The rulebook, which has often proved difficult to enforce and has served as a source of tension, was suspended during the COVID-19 pandemic but should be reactivated next year. Key targets from the old Stability and Growth Pact will remain. Under current rules, countries must aim to keep their government deficit below 3% of gross domestic product, and their public debt below 60% of GDP.