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A proposal to revive the European Fiscal Framework

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  • Grégory Claeys
  • Zsolt Darvas
  • Alvaro Leandro

Abstract

Highlights • Pro-cyclical fiscal tightening might be one reason for the anaemic economic recovery in Europe, raising questions about the effectiveness of the EU’s fiscal framework in achieving its two main objectives- public debt sustainability and fiscal stabilisation. • In theory, the current EU fiscal rules, with cyclically adjusted targets, flexibility clauses and the option to enter an excessive deficit procedure, allow for large-scale fiscal stabilisation during a recession. However, implementation of the rules...

Suggested Citation

  • Grégory Claeys & Zsolt Darvas & Alvaro Leandro, 2016. "A proposal to revive the European Fiscal Framework," Policy Contributions 13490, Bruegel.
    • Handle: RePEc:bre:polcon:13490
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    References listed on IDEAS

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