About: stability and growth pact

Climate change 18-10-2021

Fiscal reform and why it matters for climate

The EU's economic governance must drive climate action for a just transition, not austerity, writes Isabelle Brachet.
Economic governance 02-07-2021

Revamping fiscal rules requires a new understanding on debt sustainability

It is necessary to reform the European Union’s flawed macroeconomic architecture as the post-pandemic world demands a new fiscal rulebook to boost our economies, argues Margarida Marques.
Economy & Jobs 15-05-2018

Member states should renew fiscal vows

In 2012, all but two EU member states committed themselves to strengthening the rules and institutions that govern their national budget preparation processes by signing the European Fiscal Compact. However, little has been done since, writes Michal Horvath.
Security 12-12-2016

Euro Bombs: European Investment Bank to be turned into arms bank?

The EU consistently fails to make crucial public investments in infrastructure, education or healthcare, but seems to have no problem finding the money for military upgrades, writes Fabio de Masi.
Euro & Finance 14-07-2016

The threat of populism must be a non-issue in decision to fine Portugal and Spain

Stability and Growth Pact rules must be applied to the letter if the eurozone is to keep any kind of credibility. Populism must not be used as an excuse to reward irresponsible budgetary policies, argues Friedrich Heinemann.
Euro & Finance 14-07-2016

Decision-making and disarray in the EU

The EU’s complex bureaucracy has prevented it from dealing with crises effectively, writes Antonia Colibasanu.

Why we don’t need the new fiscal treaty

The proposed fiscal compact treaty is redundant as it presents little improvement over the existing EU rules and does not address the financial markets' actual concerns over short and medium-term growth, argues Massimiliano Marcellino.
Euro & Finance 28-02-2011

Why Europe needs automatic haircuts

The euro zone requires automatic "haircuts" to accompany its bailouts as the currency union cannot be maintained without market discipline, writes Hans-Werner Sinn, an economist at the University of Munich.
Euro & Finance 18-02-2011

European pacts: Time for an economic union

Germany's proposal for a 'competitiveness pact' opens a unique opportunity to forge a real economic, not just monetary union, says Maria João Rodrigues, an economic policy professor and special advisor to the EU institutions. But she also warns about risks of serious divisions which have started to emerge.
Euro & Finance 03-12-2010

A new compromise for a sustainable euro zone

The euro zone is facing a systemic crisis, but exit or default are not solutions and a new compromise is needed between member states and financial investors, writes Maria João Rodrigues, professor of European Economic Policies at the Université Libre de Bruxelles and a policy advisor to the EU institutions.
Euro & Finance 08-11-2010

Not only governments are to blame for exploding government debts

Although EU governments do bear responsibility for their current debt problems, this is only half the story as the financial crisis was triggered by unsustainable increases in private debt, writes Paul de Grauwe, professor of economics at the Katholieke Universiteit Leuven in Belgium.
Euro & Finance 02-11-2010

Ambitious? Yes. Effective? Perhaps. The Commission’s Proposals on the Stability Pact

If adopted and implemented by the EU, the European Commission's legislative proposals on economic governance will constitute a new way of coordinating economic policies in the bloc, writes Nicolaus Heinen, an analyst at Deutsche Bank Research.
Euro & Finance 26-10-2010

Why the stability pact is irrelevant

France and Germany are pushing for sanctions in the EU's eurozone stability pact, but fiscal profligacy only played a minor role in the debt crisis and the pact is the wrong place to start, writes Wolfgang Münchau of Eurointelligence in an October opinion piece.
Euro & Finance 30-04-2010

The era of easy debt is over

The current debt crisis, of which Greece serves as the most critical example, shows that the risks associated with debt accumulation have been vastly underestimated, writes Tomi Huhtanen, director of the Centre for European Studies.

Analysis: European Public Finances and Statistics – unreal figures for an uncertain policy

This paper by the Thomas More institute in France addresses the issue of budgetary balance and raises doubts over the reliability of the European statistic system.
Enlargement 01-09-2005

Design and implementation of the Stability and Growth Pact: The perspective of new member states

Current developments in the design and management of fiscal rules in the European Union may have negative implications for new member states, says Fabrizio Coricelli in a paper published by the Center for Social and Economic Research (CASE). Loosening of the Stability and Growth Pact (SGP) and a growing degree of arbitrariness in its implementation reduce incentives for fiscal adjustment in New Member States, adjustment that would be crucial during the transition to the Eurozone. High budget deficits may prove a serious obstacle in the process of catching up of New Member States to the income levels of EU-15 countries.
Euro & Finance 24-03-2005

Stability and Growth Pact: Government credibility has collapsed

In the context of the Stability and Growth Pact reform deal, CEPS economists argue that "it does not bode well for the future of Europe when two Euroland heavyweights (France and Germany) whose economies were supposed to be the motors of European integration have become its main brake".
Enlargement 23-03-2005

The Stability and Growth Pact – Essential and unfeasible

This paper, by Jacek Rostowski, has been prepared for the international conference entitled "Europe after the enlargement", to be hosted by the Center for Social and Economic Research (CASE) in Warsaw on 8-9 April.
Future EU 11-02-2005

Opinion – Lisbon and Stability Pact: Europe’s perverse system

With the Stability and Growth Pact and the Lisbon Agenda, the EU has created a perverse system which is incapable of creating a feeling of effectiveness and political success, argues Thomas Klau in the Financial Times Germany.
Future EU 03-02-2005

Opinion: Stability & Growth Pact focus should be on public debt

Abandon the annual budget deficit criterion and focus instead on medium-term targets for public debt, argues Charles Wyplosz in the Financial Times.
Euro & Finance 13-12-2004

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

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.
Euro & Finance 16-03-2004

The Nine Lives of the Stability Pact

In a special report by CEPS, its Macroeconomic Policy Group (MPG) focuses on the problems encountered in implementing the excessive deficit procedure foreseen in the Maastricht Treaty along the lines of the Stability and Growth Pact. The Pact has effectively been suspended since EcoFin's 25 November decision not to endorse the Commission's recommendations vis a vis France and Germany.
Security 15-12-2003

After the Failure of the Constitutional Treaty Negotiations: New Directions for European Integration

This is a report on the outcome of the European Council Summit of 12-13 December 2003 by the Political Director of the European Policy Centre.
Euro & Finance 26-11-2003

Facing reality – A weakened Stability Pact is a blow to an ‘ever’ closer Union

The article assesses the wider political fallout from the ongoing debate on the future of the Stability and Growth Pact.