The pandemic and the fallout from Russia's invasion of Ukraine have intensified longer-term fiscal pressures in the European Union, stemming from increased debt, anticipated higher real interest rates, and heightened public investment demands. This Policy Brief provides quantitative assessments and policy implications. Firstly, most EU countries will require long-term increases in primary fiscal balances, ranging from 0.5 percent to 1.5 percent of GDP, though adjustments vary due to existing fiscal space disparities. Secondly, while significant, the additional fiscal adjustment appears manageable, with some countries needing to raise primary balances by over 2 percent of GDP. Thirdly, future real interest rate paths are uncertain, having risen by approximately 2 percentage points post-pandemic but remaining relatively low at around 1 percent in real terms. Policymakers should not presume a decline in rates. Lastly, increased public spending demands for defense and climate initiatives, exceeding 1 percent of GDP annually, aren't yet factored into fiscal baselines and will compound existing adjustment efforts. Gradual fiscal adjustment, commencing when cyclical conditions permit, is crucial to avoid hampering economic growth.