Europe is in need of further structural reforms but appetite for them seems to be waning, partly due to political opposition and concerns about their distributive and short-term economic effects. Could upfront fiscal support enhance the gains from reforms and break this political deadlock? Would this weaken or instead strengthen public finances over the medium term? What should countries without fiscal space do to foster reforms? In order to strengthen the ongoing recovery and ensure the progress of the European integration, these central questions need to be addressed. At this DIW event, the International Monetary Fund (IMF) presents its latest paper tackling these issues.
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