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 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.

scholarly journals Risking the Stability of EMU: the Asymmetric Application of the Stability and Growth Pact

2006 ◽  
Vol 2 (1) ◽  
Author(s):  
Bartholomew Paudyn
Keyword(s):  
Interest Rates ◽  
Price Stability ◽  
Risk Governance ◽  
The Political ◽  
Stability And Growth Pact ◽  
Risk And Uncertainty ◽  
The Core ◽  
Growth Pact ◽  
Ultimate Objective ◽  
The Stability

Fiscal profligacy poses a high risk to the credibility of Europe common monetary policy and its ultimate objective of price stability. Unfortunately, the aim of preventing fiscally responsible states from being penalized by those with lax budgetary policies via inflationary pressures and interest rates is jeopardized as members breach the Stability and Growth Pact (SGP). Moreover, there are major institutional inconsistencies in how states are treated under the current framework as is exemplified by the November 2003 ECONFIN crisis. What is witnessed is an antagonistic relationship between the programmatic and operational dimensions of monetary governance. Does the fact that half the members who have adopted the euro have also breached its rules signal that surveillance as regulation is being displaced as a mode of governance? It calls for a re-imaged spatial-temporal explanation of governance to adequately capture the political economy of EMU. At the core of EMU management are risk and uncertainty based modes of governing. Employing a governmentality approach, I argue that the audit is one prominent style of processing and institutionalizing risk as an aggregate future of monetary activity. By altering the administration and objects of risk governance the audit is perceived as reducing the susceptibility to failure. Hence, it has a performative function that extends beyond simply measuring deficit or debt to GDP performance and acts as a social and institutional process structuring a homogenous set of fiscal practices.

Education of the Future:Reproductive-Productive Transition

2020 ◽  
pp. 5-16
Author(s):  
Alexander O. Karpov ◽  
Keyword(s):  
Knowledge Society ◽  
Point Of View ◽  
The Reformation ◽  
Fundamental Challenge ◽  
The Future ◽  
The Stability ◽  
The Relationship ◽  
Organizational Principles ◽  
Education Transformation

Education of the future is a fundamental challenge of the present time that de­fines a horizon of thinking of society and about society. The knowledge society stepping into the role of a horizon brings the substance of the matter to the ability of education to cultivate the creative function of thinking. From the ontological point of view, this article deals with the problem of the education transformation from reproductive to productive forms of working with knowledge (the repro­ductive-productive transition). The prevailing reproductive model of modern ed­ucation is a class-and-lesson (or lecture-seminar) system. Institutionalization of class-and-lesson education in the Reformation years in the XVI c. is ana­lyzed, and key didactic and organizational principles laid down in its basis by Ph. Melanchton are identified. Arguments are presented against qualification of educators in the age of Reformation as humanists. The concept of epistemic dominant is introduced for the purpose of explaining the education transforma­tion process. It is shown that the reproductive-productive transition belongs to the essence of our time. The stability of the class-and-lesson system can be ex­plained by resting on an essential part of educational universals that are timeless in nature. Based on the theory of non-Kuhn’s paradigms, the relationship be­tween the reproductive-productive transition and a shift in the ontological foun­dations of the education phenomenon as to its forms, ways, functions, and gener­alization of its being is shown.

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.

Risking the Stability of EMU: the Asymmetric Application of the Stability and Growth Pact

2006 ◽  
Author(s):  
Bartholomew Paudyn
Keyword(s):  
Interest Rates ◽  
Price Stability ◽  
Risk Governance ◽  
The Political ◽  
Stability And Growth Pact ◽  
Risk And Uncertainty ◽  
The Core ◽  
Growth Pact ◽  
Ultimate Objective ◽  
The Stability

Fiscal profligacy poses a high risk to the credibility of Europe common monetary policy and its ultimate objective of price stability. Unfortunately, the aim of preventing fiscally responsible states from being penalized by those with lax budgetary policies via inflationary pressures and interest rates is jeopardized as members breach the Stability and Growth Pact (SGP). Moreover, there are major institutional inconsistencies in how states are treated under the current framework as is exemplified by the November 2003 ECONFIN crisis. What is witnessed is an antagonistic relationship between the programmatic and operational dimensions of monetary governance. Does the fact that half the members who have adopted the euro have also breached its rules signal that surveillance as regulation is being displaced as a mode of governance? It calls for a re-imaged spatial-temporal explanation of governance to adequately capture the political economy of EMU. At the core of EMU management are risk and uncertainty based modes of governing. Employing a governmentality approach, I argue that the audit is one prominent style of processing and institutionalizing risk as an aggregate future of monetary activity. By altering the administration and objects of risk governance the audit is perceived as reducing the susceptibility to failure. Hence, it has a performative function that extends beyond simply measuring deficit or debt to GDP performance and acts as a social and institutional process structuring a homogenous set of fiscal practices.   Full text available at: https://doi.org/10.22215/rera.v2i1.163  

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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