In the case of government bonds, for example, this means that market participants are assessing whether deficit, debt and growth potential are in good shape, and are taking the future outlook into account. Of course, a changing interest rate environment will have an impact on these factors. The Member States now have the task of bolstering confidence in their future fiscal policies.
Against such a backdrop, it surprises me that the escape clause for deviation from the fiscal rules was recently already extended to 2023. Furthermore, there sometimes seems to be the impression that fiscal rules will no longer be truly binding in future.