The recovery fund is therefore an excellent initiative. But that it is not enough, which brings me to the second item on my list. If we want to put an end to divergent growth in Europe we will also have to coordinate fiscal policy more closely.
In recent years, European fiscal rules have been particularly focused on the maximum budget deficit, the well-known 3% of gross domestic product. But as a result, in practice the rules proved to be strict during bad times, and ineffective during the good times. Thus accentuating the peaks and troughs of our economy, instead of smoothing them.