European Fiscal Monitor new report by EU IFIs Network
Chair Lilia Cavallari: “Independent fiscal institutions are vital to ensure accountability and resilience”
22 July 2025
At a time when Europe is entering a new era of increased risks to public finances and spending pressures, independent public finance institutions are vital to ensure that accountability and resilience remain at the core of budget decisions. This is how Lilia Cavallari, Chair of the EU IFI Network (the European network of independent fiscal institutions) and of the Parliamentary Budget Office in Italy (UPB), stated on the findings of the new European Fiscal Monitor, the report just published by the EU IFIs Network itself.
The report, available here, highlights how 2025 represents a defining moment for European fiscal policy, with the new EU economic governance framework aiming to strengthen debt sustainability on one hand, but new increasing risks for the public budget on the other, whether geoeconomic or political instability, new defense spending, the green transition, or ageing populations. The report notes that, while short-term growth and inflation forecasts are broadly plausible, fiscal risks are increasing and medium-term compliance with EU rules remains uncertain. Furthermore, only 40% of IFIs (including the UPB) expect that their country will be able to comply with their net expenditure growth path in 2025.
The IFIs’ European Fiscal Monitor is published twice a year. This edition is based on data collected between May and June 2025 and provides a timely and comprehensive overview of IFI assessments across Europe, drawing on survey responses from 32 IFIs covering 26 Member States and the United Kingdom.
