scholarly journals Stability and Growth Pact – critical analysis and perspectives of the future development

2004 ◽  
Vol 52 (3) ◽  
pp. 97-106
Author(s):  
Robert Plaga ◽  
Hubert Smekal
Keyword(s):  
Statistical Evaluation ◽  
Fiscal Policies ◽  
Stability And Growth Pact ◽  
Fiscal Discipline ◽  
Working Paper ◽  
Growth Pact ◽  
The Future ◽  
The Stability ◽  
Functioning Mechanism

This working paper seeks to define perspectives of the functioning of the Stability and Growth Pact as a tool for regulation of national fiscal policies through analysis and description of legal acts regarding the Pact and through analysis and statistical evaluation of the compliance of the EMU States with requirements for fiscal discipline. The first part brings the description of the Pact's functioning mechanism and defines its weaknesses (e.g. extensive role of the Council). The second part tries to analyse and statistically evaluate how the Member States complied with the provisions of the Pact during the years 1999-2003. The results are compared with the most mentioned shortcomings of the Pact. In the concluding part the paper discusses proposals for a change of the Pact and tries to estimate perspectives of its functioning in the future.

European economic institutions: Stability- or growth-oriented?

2007 ◽  
Vol 57 (1) ◽  
pp. 35-65
Author(s):  
N. Acocella ◽  
G. Bartolomeo
Keyword(s):  
Wage Bargaining ◽  
Point Of View ◽  
Price Stability ◽  
Fiscal Policies ◽  
Stability And Growth Pact ◽  
Growth Pact ◽  
European Institutions ◽  
The Stability ◽  
The Relationship

This paper deals with various aspects of the performance expected from some of the most relevant European institutions (monetary and tax authorities, unions) vis-a-vis alternative ones, from a macroeconomic point of view. The role of the rules (e.g. the Stability and Growth Pact) as a coordination device to deal with externalities arising from national fiscal policies is first considered and compared to explicit coordination. The priority given to price stability is then discussed together with the questions of reputation, credibility and the relationship with fiscal policy and labour markets. A conservative central bank eliminates the temptation to inflate, but is only a second-best solution for internalising the externalities arising from uncoordinated-wage bargaining. The paper finally discusses the consequences on growth of the stability pursued by actual European institutions. Some reflections on the ‘model’ adopted for shaping European institutions conclude the paper.

scholarly journals Proces doskonalenia oceny równowagi budżetowej w Unii Gospodarczej i Walutowej

2015 ◽  
Vol 4 (3) ◽  
pp. 13-26
Author(s):  
Juliusz Giżyński ◽  
Ryszard Wierzba
Keyword(s):  
Global Financial Crisis ◽  
Fiscal Rules ◽  
Stability And Growth Pact ◽  
Budget Deficits ◽  
Budget Balance ◽  
Fiscal Discipline ◽  
Political Will ◽  
Growth Pact ◽  
The Stability ◽  
The Global Financial Crisis

Fiscal discipline is one of fundamental requirements of the Economic and MonetaryUnion as specified in the provisions of the Maastricht Treaty (1992) and laterelaborated on in the Stability and Growth Pact (1997). EMU Member States fromthe beginning had serious difficulties in adhering to the fiscal rules, which ledto the first reform of the SGP in 2005 resulting in more flexible fiscal rules. Despitegood economic situation, EMU’s economies still had budget deficits which furtherincreased with the global financial crisis causing government debts to soar overacceptable limits. In due time, two further reforms of SGP were enacted, in 2011and 2013, introducing new indicators and improvements in the assessment of thegovernment budget balance in the euro area. Nevertheless, enforcement of newrules still will depend on EMU governments political will.

Taylor's Fiscal Rule: An Exit to the Stability and Growth Pact Dead-end?

2006 ◽  
Vol 56 (3) ◽  
pp. 323-340 ◽  
Author(s):  
Etienne Farvaque ◽  
Florence Huart ◽  
Clément Vaneecloo
Keyword(s):  
Output Gap ◽  
Stability And Growth Pact ◽  
Budget Balance ◽  
Fiscal Discipline ◽  
Total Budget ◽  
Growth Pact ◽  
Dead End ◽  
Fiscal Rule ◽  
The Stability ◽  
Structural Budget

This study applies Taylor's (2000) proposed fiscal rule to EU-15 countries. We show that such a simple, flexible and transparent fiscal rule, if applied to individual EMU countries, could improve the enforceability of the Stability and Growth Pact. This rule is used to compute the structural budget balance consistent with a total budget position in balance, given national specificities concerning automatic stabilisers and the output gap. It is thus designed for being consistent with both fiscal discipline and flexibility.

Open Issues On the Implementation of the Stability and Growth Pact

2000 ◽  
Vol 174 ◽  
pp. 92-104 ◽  
Author(s):  
Marco Buti ◽  
Bertrand Martinot
Keyword(s):  
Euro Area ◽  
Policy Coordination ◽  
Stability And Convergence ◽  
Fiscal Policies ◽  
Stability And Growth Pact ◽  
Budget Deficits ◽  
Macroeconomic Policies ◽  
Growth Pact ◽  
Long Run ◽  
The Stability

Now that the budget deficits in the Euro Area are approaching balance, the Stability and Growth Pact (SGP) looks like a largely non-constraining institutional framework with little impact on national fiscal policies. This article challenges this view and argues that the implementation of the SGP ‘at cruising speed’ is faced with a number of outstanding issues: safeguarding the automatic stabilisers under the SGP; coping with the consequences of the asymmetric nature of the SGP for the co-ordination of macroeconomic policies; and ensuring the long-run sustainability of public finances. It concludes that enlarging the scope and enhancing the credibility of the stability and convergence programmes to become a true instrument of fiscal policy coordination in the Euro Area would be a first step in lifting the uncertainties surrounding the implementation of the SGP.

Euro-area fiscal policies will not find common ground

2015 ◽  
Keyword(s):  
Euro Area ◽  
Common Ground ◽  
Prime Minister ◽  
Fiscal Policies ◽  
Stability And Growth Pact ◽  
Fiscal Consolidation ◽  
Content Type ◽  
Growth Pact ◽  
The Stability ◽  
Economic Forecasts

Significance This follows the submission by euro-area countries of their 2016 draft budgetary plans (DBPs), in compliance with the Stability and Growth Pact (SGP). The Commission will release its judgements by end-November. DBPs can be deemed 'compliant', 'broadly compliant' or 'at risk of non-compliance'. Impacts Under October 21 plans, the Commission will pursue more transparency for economic forecasts and surveillance decisions. The ongoing recovery and the Commission's flexible approach will support fiscal consolidation efforts. Submission of Portugal's DBP remains subject to the fate of newly reappointed centre-right Prime Minister Pedro Passos Coelho. The Spanish government will have to submit a revised budget following the Commission's early judgement in its case.

Policy Coordination in the Euro Area

2009 ◽  
pp. 5-31
Author(s):  
Carlo Panico ◽  
Vŕzquez Suŕrez Marta
Keyword(s):  
Euro Area ◽  
Policy Coordination ◽  
Institutional Arrangements ◽  
Fiscal Policies ◽  
Stability And Growth Pact ◽  
Growth Pact ◽  
Long Run ◽  
Short Run ◽  
The Stability

The paper deals with the problems of coordination between monetary and fiscal policies in the Euro area. It examines how the existing institutions handle these problems and how the literature evaluates their working, deriving from these evaluations a proposal to reorganise them. The paper points out that there is a need for coordination between monetary and fiscal policies when both cyclical (short-run) and structural (long-run) problems are dealt with. Then it assesses how coordination is carried out under the existing institutional arrangements and identifies which parts of them, according to the existing literature, are in need of modification. Finally, on the basis of the content of this literature, it formulates a proposal to reform the institutional arrangements and the economic content of the Stability and Growth Pact, which aims at making them work effectively.

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