Under the new EU fiscal framework, which became effective in April 2024, what specific allowance is made for member states while aiming to keep deficits below 3% of GDP and debt below 60% of GDP?

Flexibility for increased defence spending.

Which significant mechanism, designed to level the playing field for carbon emissions and prevent carbon leakage, became fully operational in the EU in 2026, coinciding with the phasing out of free allowances for some industrial sectors?

The Carbon Border Adjustment Mechanism (CBAM).

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Europe's 2026 Economic Outlook: ECB Rate Hikes, Fiscal Shifts, and Geopolitical Inflation Pressures

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