What Does DSA's Debt Sustainability Analysis Really Mean?

The proposal would replace what is now called the preventive arm of the so-called stability and growth pack. The current legislation that governs fiscal policy in the European Union consists of this collection of overlapping and sometimes confusing rules, says Jeroen Dijsselbloem. Every country would have to adopt a medium-term adjustment plan guided by debt sustainability analysis. In practice, it means there would be a structured negotiation process between the European Commission and member countries.