Europe's Endless Policy Whiplash: A Pattern of Reversal

The European Commission has been accused of making policy U-turns without explanation. In May, EU economy chief Valdis Dombrovskis said that EU countries could spend up to 0.3% of GDP per year over three years to strengthen their 'structural resilience' to energy shocks without incurring Brussels' fiscal wrath.

This was a reversal of the Commission's earlier stance on fiscal discipline, which had been reiterated just days before due to concerns about 'fiscal sustainability'. The move was criticized as lacking economic rationale, given that Brent crude oil prices had dropped from $114 to below $100 per barrel over the previous month.

The U-turn is part of a pattern of regular policy reversals in EU policymaking. Environmental rules have been scrapped months after being agreed, and pledges to respond to US tariffs have been ignored. Plans to sanction Russia's economy are repeatedly gutted.