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Enforcement and the Stability and Growth Pact

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  • Anthony Annett
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    Abstract

    The Stability and Growth Pact has been a success in numerous EU countries, especially in guiding them toward underlying fiscal balance ahead of population aging. These countries tend to be smaller, subject to greater macroeconomic volatility, and reliant on a form of fiscal governance that emphasizes targets and contracts. Most of the new members share these characteristics. For the countries less compatible with the Pact, domestic governance reforms that increase the reputational costs for noncompliance can be useful complements to the fiscal framework.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/116.

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    Length: 34
    Date of creation: 01 May 2006
    Date of revision:
    Handle: RePEc:imf:imfwpa:06/116

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    Keywords: European Union; Budget deficits; fiscal policy; fiscal governance; fiscal framework; fiscal performance; fiscal rules; fiscal discipline; fiscal balance; budgetary institutions; fiscal adjustment; fiscal policies; public debt; public finances; fiscal rule; fiscal institutions; discretionary fiscal policy; fiscal contracts; fiscal policy outcomes; structural fiscal; fiscal frameworks; fiscal contract; fiscal agencies; fiscal positions; fiscal profligacy; fiscal outcomes; fiscal sustainability; fiscal developments; budget balances; fiscal stability; excessive deficits; annual budget; fiscal balances; fiscal multipliers; fiscal records; cyclical fiscal policy; fiscal reforms; fiscal policy rules; fiscal surpluses; social insurance; fiscal stabilizers; excessive deficit procedure; fiscal agency; fiscal deficits; budget constraint; budget process; fiscal reaction function; fiscal data; fiscal behavior; fiscal difficulties; fiscal affairs; aggregate fiscal; fiscal authorities; fiscal projections; fiscal position; national budget; fiscal reaction; budgetary consolidation; tax payments; aggregate fiscal discipline; fiscal expansions; fiscal burden; budgetary rules; fiscal affairs department; fiscal targets;

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    Cited by:
    1. Jakob de Haan & Richard Jong-A-Pin & Jochen O. Mierau, 2012. "Do Budgetary Institutions Mitigate the Common Pool Problem? New Empirical Evidence for the EU," KOF Working papers 12-303, KOF Swiss Economic Institute, ETH Zurich.
    2. Iyabo Masha & Leighton Harris & Jian-Ye Wang & Kazuko Shirono, 2007. "The Common Monetary Area in Southern Africa," IMF Working Papers 07/158, International Monetary Fund.
    3. Giuliodori, Massimo & Beetsma, Roel, 2008. "On the relationship between fiscal plans in the European Union: An empirical analysis based on real-time data," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 221-242, June.
    4. Pina, Álvaro M. & Venes, Nuno M., 2011. "The political economy of EDP fiscal forecasts: An empirical assessment," European Journal of Political Economy, Elsevier, vol. 27(3), pages 534-546, September.
    5. Bénétrix, Agustín S. & Lane, Philip R., 2013. "Fiscal cyclicality and EMU," Journal of International Money and Finance, Elsevier, vol. 34(C), pages 164-176.
    6. Jacopo Cimadomo, 2007. "Fiscal Policy in Real Time," Working Papers 2007-10, CEPII research center.
    7. Frank A.G. den Butter & Mathieu L.L. Segers, 2014. "Prospects for an EMU between Federalism and Nationalism," Tinbergen Institute Discussion Papers 14-008/VI, Tinbergen Institute.
    8. Győrffy, Dóra, 2008. "Költségvetési kiigazítás és növekedés az Európai Unióban. Tanulságok Magyarország számára
      [Budget adjustment and growth in the European Union lessons for Hungary]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 962-986.
    9. Kerstin Bernoth & Andrew Hughes Hallet & John Lewis, 2008. "Did fiscal policy makers know what they were doing? Reassessing fiscal policy with real-time data," DNB Working Papers 169, Netherlands Central Bank, Research Department.
    10. Martin Cihák & Wim Fonteyne, 2009. "Five Years After," IMF Working Papers 09/68, International Monetary Fund.
    11. Merola, Rossana & Pérez, Javier J., 2013. "Fiscal forecast errors: Governments versus independent agencies?," European Journal of Political Economy, Elsevier, vol. 32(C), pages 285-299.
    12. Muscatelli, Vito A. & Natale, Piergiovanna & Tirelli, Patrizio, 2012. "A simple and flexible alternative to Stability and Growth Pact deficit ceilings. Is it at hand?," European Journal of Political Economy, Elsevier, vol. 28(1), pages 14-26.

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