ABSTRACT – The recent reform of the Stability and Growth Pact represents a substantial evolution in the framework of European economic governance, redefining the regulatory framework governing national public finances. Drawing upon the lessons learned from the 2020 pandemic crisis, the new Pact seeks to strike a delicate balance between the imperative of ensuring public finance sustainability and the financial solidarity, while introducing greater flexibility in the management of public expenditure. Therefore, this paper aims to examine the reform, exploring the equilibrium established by the new fiscal rules as well as the influence exerted by the Next Generation EU initiative in the reconfiguration of the revised SGP.
