Life after COVID: EU re-thinks budget rules for new era

FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium May 5, 2021. REUTERS/Yves Herman

BRUSSELS (Reuters) - So often the source of rows between its members, the European Union starts reviewing its rules for national budgets on Tuesday to fit a post-pandemic reality of higher public debt and the huge costs of transitioning to a zero-emissions economy.

During the landmark review - likely to take until the end of 2022 at least - governments, economists and academics will also debate how to simplify the so-called Stability and Growth Pact, which has grown so complex that few people fully understand it.