The policy responses of EU member states and the guidance provided by the European Commission, which is responsible for implementing the commonly agreed EU fiscal framework that imposes strict rules regarding deficits and public debt, are of particular interest. According to Eurostat, the euro area government debt-to-GDP ratio stood at 88.9 per cent in early 2026, showcasing the scale of the fiscal pressures. The network of National Fiscal Councils, tasked with assessing the developments in the public finances of EU member states, has published its annual assessment of member states’ fiscal policies. The report’s key findings highlight the fact that the framework, as implemented by most countries, raises legitimate concerns regarding the long-term sustainability of public finances. Andreas Charalambous is an economist and Chairman of the Cyprus Fiscal Council.