A dynamic perspective for the reform of the stability and growth pact

"This paper explores the functioning of the EMU Stability and Growth Pact from 1999 to 2005, year of its first explicit reform. The causes and the principal axes of that reform are analysed, as well as the main arguments for defending or critizising it. As to the Pact’s prior functioning, for a...

Full description

Bibliographic Details
Main Author: Deubner, Christian
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Paris 2006
CEPII
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19133166124919513489-a-dynamic-perspective-for-the-.htm
_version_ 1771659899443347457
author Deubner, Christian
author_facet Deubner, Christian
collection Library items
description "This paper explores the functioning of the EMU Stability and Growth Pact from 1999 to 2005, year of its first explicit reform. The causes and the principal axes of that reform are analysed, as well as the main arguments for defending or critizising it. As to the Pact’s prior functioning, for almost all small and medium Euro area states this is a success story and the reform appears apt to facilitate the Pact’s future implementation. As to the larger Member States, the Pact experience has been a history of non-observance which the Pact’s reform appears only to condone and abet. This contradictory experience leads to a negative judgement on the functioning of the SGP as a whole. But recognising the success of the compliers’ group, and not only the failure of the non-compliers, justifies the Pact’s basic logic, as against certain commonly heard indictments. It permits to sharpen the analysis. These points will be explored later in this paper. As to the reform, it does not appear to correct the most evident drawbacks of the Pact and of its application. A negative assessment appears especially justified in a static perspective and taking the reform as it is, tel-quel. But a more positive assessment appears possible, if one views the reform in a more dynamic perspective, implementing it in a forward-looking manner, by operationalising the new concepts of the reform (the “relevant factors”), and by further improving the context: first by developing Member states’ capacities to better apply the Pact, and eventually also counting on a stronger influence of financial market actors, on public borrowing."
format TEXT
geographic EU countries
id 19133166124919513489_29729f09ba1345c7ba3b59af233b3110
institution ETUI-European Trade Union Institute
is_hierarchy_id 19133166124919513489_29729f09ba1345c7ba3b59af233b3110
is_hierarchy_title A dynamic perspective for the reform of the stability and growth pact
language English
physical 52 p.
Digital
publishDate 2006
publisher Paris
CEPII
spellingShingle Deubner, Christian
economic reform
European Union
monetary policy
national budget
Stability Pact
A dynamic perspective for the reform of the stability and growth pact
title A dynamic perspective for the reform of the stability and growth pact
topic economic reform
European Union
monetary policy
national budget
Stability Pact
url https://www.labourline.org/KENTIKA-19133166124919513489-a-dynamic-perspective-for-the-.htm