IDEAS home Printed from https://ideas.repec.org/a/kap/iecepo/v1y2004i1p9-13.html
   My bibliography  Save this article

The Stability and Growth Pact: The appropriate fiscal framework for EMU

Author

Listed:
  • Otmar Issing

Abstract

Developments in fiscal policies since the start of Economic and Monetary Union have time and again raised the question of whether the Stability and Growth Pact (SGP) provides an appropriate framework for fiscal policy coordination. Critics have argued that the SGP, in particular the set of rules specifying the application of the 3% deficit reference value of the Maastricht Treaty, is too rigid as it could force countries to restrain fiscal policies in difficult times and exacerbate cyclical volatility. Moreover, the SGP has been accused of inhibiting growth by limiting useful public expenditure (e.g. on investment). Supporters argue that the SGP provides a constructive, and indeed indispensable, framework for fiscal policies in Monetary Union. It is credited with securing stable and sustainable public finances within adequate bounds of flexibility. In the current dire state of public finances in many Member States and at the euro area level, this debate has reached a new peak. Copyright Springer-Verlag Berlin Heidelberg 2004

Suggested Citation

  • Otmar Issing, 2004. "The Stability and Growth Pact: The appropriate fiscal framework for EMU," International Economics and Economic Policy, Springer, vol. 1(1), pages 9-13, March.
    • Handle: RePEc:kap:iecepo:v:1:y:2004:i:1:p:9-13
    DOI: 10.1007/s10368-003-0005-2
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10368-003-0005-2
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10368-003-0005-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amy K. Filipek & Till Schreiber, 2010. "The Stability and Growth Pact: Past Performance and Future Reforms," Working Papers 97, Department of Economics, College of William and Mary.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:iecepo:v:1:y:2004:i:1:p:9-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.