European Fiscal Compact

Alright kiddo, let's talk about the European Fiscal Compact. It's basically like a set of rules that grown-ups in Europe made to make sure that all the countries that use the same money, called the Euro, are being responsible with how they spend their money.

It's important because if one country doesn't follow these rules and spends too much money or borrows too much money, it can cause problems for the other countries that use the Euro too.

The rules say that each country has to make sure they're not spending more money than they're making and that they're not borrowing too much money. They also have to work towards reducing their national debt over time.

By following these rules, the grown-ups hope that the countries that use the Euro will be able to work together better and not have as many money problems in the future.