National fiscal rules fail to deliver fiscal stability, only signal commitment.
The European Union faced major economic challenges during the 2007/2009 crisis. To address these issues, countries within the EU adopted national fiscal rules to improve accountability and credibility in fiscal policy-making. However, these rules were not the main factor in maintaining fiscal discipline; instead, they were part of a larger reform package. Countries implemented fiscal rules to show their commitment to responsible budgeting, signaling their dedication to financial stability.