The dog that lost its bark – the Commission and the Stability Pact

DISCLAIMER: All opinions in this column reflect the views of the author(s), not of EURACTIV.COM Ltd.

In a new Policy Brief submitted in November 2004 to the
Monetary Committee of the European Parliament, CEPS Director Daniel
Gros and two of his fellow Macroeconomic Policy Group say that the
Commission’s proposals for reform of the Stability and Growth Pact
risk watering down the pact, resulting in an erosion of fiscal
discipline.

CEPS Director Daniel Gros and two of his fellow Macroeconomic
Policy Group members find that the case for consolidation of
government finances against the background of present and
prospective demographic changes remains very strong. They argue
that the Commission’s recent proposals for reform of the SGP risk
watering down the Pact, resulting in an erosion of fiscal
discipline. 

To access the full article, click here

Daniel Gros is Director of the Centre for European Policy
Studies

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