The Covid-19 pandemic and efforts to combat it have resulted in an explosion increase in public deficits and debts to Greece and other countries. Therefore, in the near future, it will be necessary to consider what is the best way to return to fiscal stability so that the economy’s long-term prospects are not harmed. On top of that, the war in Ukraine at the start of 2022 and the energy crisis that followed, as well as the unprecedented reaction of fiscal policy in many countries, have put further stress on fiscal balances. Therefore, in the near future, it will be necessary for policy makers to consider the best way to return to fiscal stability in order not to undermine the economy’s long-term prospects. As a result, we will first look at the role of fiscal rules and fiscal councils, as well as their specific characteristics in achieving and maintaining fiscal balance and avoiding pro-cyclical fiscal policy. Their role is particularly important in light of the current debate over the revision of European fiscal framework (Stability and Growth Pact), as it has been observed that in the past it has worked against its original purpose. At the same time, given the future need to return to fiscal balance in Greece and the EU, the thesis will examine the best possible way to return to fiscal balance that will have the least negative impact on the economic growth of Greece and other advanced countries from fiscal adjustment measures. Finally, given the limited public resources, fiscal policies (increase spending, decrease taxes) will be investigated in order to achieve the best macroeconomic effects. In particular, because of the European Recovery and Resilience Fund’s critical role in financing the recovery of the Greek and European economies in the post-pandemic era through increased investments, my thesis aims to examine the role of public investments and their macroeconomic impact.