Have euro area and EU economic governance worked? Just the facts
We test whether two key elements of the EU and euro area economic governance framework, the Stability and Growth Pact and the Lisbon Strategy, have had any impact on macroeconomic outcomes. We test this proposition using a difference-in-difference approach on a panel of over 30 countries, some of which are non-EU (control group). Hence, the impact of the EU economic governance pillars is evaluated based on both the performance before and after their application as well as against the control group. We find strong and robust evidence that neither the Stability and Growth Pact nor the Lisbon Strategy have had a significant beneficial impact on fiscal and economic performance outcomes. We conclude that a profound reform of these pillars is needed to make them work in the next decade. JEL Classification: E62, E63, H63, O43
|Date of creation:||May 2011|
|Contact details of provider:|| Postal: 60640 Frankfurt am Main, Germany|
Phone: +49 69 1344 0
Fax: +49 69 1344 6000
Web page: http://www.ecb.europa.eu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Levent Bulut, 2009.
"Market Disciplining of the Developing Countries' Sovereign Governments,"
0902, Department of Economics, Emory University (Atlanta).
- Levent Bulut, 2012. "Market Disciplining Of The Developing Countries' Sovereign Governments," Contemporary Economic Policy, Western Economic Association International, vol. 30(4), pages 463-488, October.
- Tito T. Boeri & Micael Castanheira De Moura & Riccardo R. Faini & Vincenzo Galasso, 2007.
"Structural Reforms Without Prejudices,"
ULB Institutional Repository
2013/205662, ULB -- Universite Libre de Bruxelles.
- Alberto Alesina & Silvia Ardagna & Vincenzo Galasso, 2010.
"The Euro and Structural Reforms,"
in: Europe and the Euro, pages 57-93
National Bureau of Economic Research, Inc.
- Alberto Alesina & Silvia Ardagna & Vincenzo Galasso, 2008. "The Euro and Structural Reforms," Working Papers 344, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Alberto Alesina & Silvia Ardagna & Vincenzo Galasso, 2008. "The Euro and Structural Reforms," NBER Working Papers 14479, National Bureau of Economic Research, Inc.
- Willem H. Buiter, 2006.
"The 'Sense and Nonsense of Maastricht' Revisited: What Have we Learnt about Stabilization in EMU?,"
Journal of Common Market Studies,
Wiley Blackwell, vol. 44, pages 687-710, November.
- Buiter, Willem H., 2005. "The 'Sense and Nonsense of Maastricht' Revisited: What Have We Learnt About Stabilization In EMU?," CEPR Discussion Papers 5405, C.E.P.R. Discussion Papers.
- Afonso, António & Hauptmeier, Sebastian, 2009.
"Fiscal behaviour in the European Union: rules, fiscal decentralization and government indebtedness,"
Working Paper Series
1054, European Central Bank.
- Cândida Ferreira, 2009. "Fiscal Behaviour in the European Union: Rules, Fiscal Decentralization and Government Indebtedness," Working Papers Department of Economics 2009/23, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Beck, Thorsten & Clarke, George & Groff, Alberto & Keefer, Philip & Walsh, Patrick, 2000. "New tools and new tests in comparative political economy - the database of political institutions," Policy Research Working Paper Series 2283, The World Bank.
- James M. Poterba & Jürgen von Hagen, 1999. "Fiscal Institutions and Fiscal Performance," NBER Books, National Bureau of Economic Research, Inc, number pote99-1, Enero.
- Alesina, Alberto & Wacziarg, Romain, 1998.
"Openness, country size and government,"
Journal of Public Economics,
Elsevier, vol. 69(3), pages 305-321, September.
- Beetsma, Roel & Giuliodori, Massimo & Wierts, Peter, 2009. "Budgeting versus implementing fiscal policy in the EU," CEPR Discussion Papers 7285, C.E.P.R. Discussion Papers.
- Bernoth, Kerstin & Hughes Hallett, Andrew & Lewis, John, 2008.
"Did Fiscal Policy Makers Know What They Were Doing? Reassessing Fiscal Policy with Real Time Data,"
CEPR Discussion Papers
6758, C.E.P.R. Discussion Papers.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ecb:ecbwps:20111344. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Official Publications)
If references are entirely missing, you can add them using this form.