Un conseil de stabilité pour assurer la soutenabilité budgétaire en UE M

This study begins with a survey of institutional developments in the European fiscal framework since the early 1990s, with an emphasis on episodes involving challenges to the framework by EMU Member States. After examining the link between growth and fiscal discipline, the author outlines the most efficient strategies to reduce the debt burden. There are two contrasting approaches: low-growth countries relied mostly on the slow growth of their public debt, whereas high-growth countries used their robust growth to reduce public debt. The effectiveness of the second strategy is underlined. Drawing on these results, the final section argues that the fiscal framework should focus less on short-term budget flows, and that monitoring and control procedures should be improved. The author proposes the creation of a Stability Council for fiscal discipline in EMU, describing its mandate, transparency requirements, implementation, and operating procedures.