Explainer-Why EU fiscal rules matter

European Union finance ministers will discuss changes to the EU's fiscal rules on Thursday and Friday to reach a deal, or at least bring positions closer, on a reform that offers countries tailor-made debt reduction paths and incentives to invest. The EU has a common currency – the euro – and the European Central Bank takes responsibility for a common monetary policy, but the bloc has no common fiscal policy. The fiscal rules, which limit government borrowing, are to ensure governments observe a common set of fiscal principles to prevent any irresponsible borrowing by one creating problems for all.