IDEAS home Printed from https://ideas.repec.org/a/ecb/ecbart/202500031.html
   My bibliography  Save this article

Medium-term fiscal-structural plans under the revised Stability and Growth Pact

Author

Listed:
  • Bouabdallah, Othman
  • Checherita-Westphal, Cristina
  • De Stefani, Roberta
  • Haroutunian, Stephan
  • Hauptmeier, Sebastian
  • Huber, Christian
  • Momferatou, Daphne
  • Muggenthaler-Gerathewohl, Philip
  • Setzer, Ralph
  • Zorell, Nico

Abstract

This article analyses the medium-term fiscal-structural plans that euro area countries have submitted under the revised Stability and Growth Pact. It discusses the fiscal and economic implications of this framework over the short and medium term, also factoring in – on a preliminary basis and acknowledging the major uncertainty ahead – the recent proposal by the European Commission to activate the national escape clause in the Stability and Growth Pact in a coordinated manner. The EU’s new economic governance framework builds on the premise that fiscal sustainability, reforms and investment are mutually reinforcing and should be fostered as part of an integrated approach. The article emphasises the importance of launching the new framework effectively and ensuring appropriate monitoring of reform and investment commitments in the plans. This is also necessary to ensure that additional spending on defence does not endanger fiscal sustainability in the medium term. JEL Classification: H11, H50, H54, H60, H68

Suggested Citation

  • Bouabdallah, Othman & Checherita-Westphal, Cristina & De Stefani, Roberta & Haroutunian, Stephan & Hauptmeier, Sebastian & Huber, Christian & Momferatou, Daphne & Muggenthaler-Gerathewohl, Philip & Se, 2025. "Medium-term fiscal-structural plans under the revised Stability and Growth Pact," Economic Bulletin Articles, European Central Bank, vol. 3.
    • Handle: RePEc:ecb:ecbart:2025:0003:1
    Note: 2679249
    as

    Download full text from publisher

    File URL: https://www.ecb.europa.eu//press/economic-bulletin/articles/2025/html/ecb.ebart202503_01~1b1a292f83.en.html
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Economic governance framework; national medium-term fiscal-structural plans;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt

    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:ecb:ecbart:2025:0003:1. 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: Official Publications (email available below). General contact details of provider: https://edirc.repec.org/data/emieude.html .

    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.