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Flexibility clauses in the Stability and Growth Pact: No need for revision

Author

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  • Micossi, Stefano
  • Peirce, Fabrizia

Abstract

After an in-depth review of the Stability and Growth Pact, the authors of this CEPS Policy Brief conclude that there is sufficient flexibility within the Pact to accommodate any unexpected drop in economic activity and has ample margin to finance structural reforms during transition to the new regime.

Suggested Citation

  • Micossi, Stefano & Peirce, Fabrizia, 2014. "Flexibility clauses in the Stability and Growth Pact: No need for revision," CEPS Papers 9514, Centre for European Policy Studies.
    • Handle: RePEc:eps:cepswp:9514
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    File URL: http://www.ceps.be/system/files/PB%20319%20Flexibility%20in%20SGP%2024%20July%20formatted.pdf
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    References listed on IDEAS

    as
    1. Olivier J. Blanchard & Daniel Leigh, 2013. "Growth Forecast Errors and Fiscal Multipliers," American Economic Review, American Economic Association, vol. 103(3), pages 117-120, May.
    2. Francesca Barbiero & Zsolt Darvas, 2014. "In sickness and in health- protecting and supporting public investment in Europe," Policy Contributions 812, Bruegel.
    3. Silvia Merler & Jean Pisani-Ferry, 2012. "Sudden Stops in the Euro Area," Review of Economics and Institutions, Università di Perugia, vol. 3(3).
    4. Fabrizio Balassone & Daniele Franco, 2004. "EMU fiscal rules: new answers to old questions?," Chapters, in: Giuseppe Eusepi & Friedrich Schneider (ed.), Changing Institutions in the European Union, chapter 1, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Achim Truger, 2015. "The Fiscal Compact, Cyclical Adjustment and the Remaining Leeway for Expansionary Fiscal Policies in the Euro Area," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 62(2), pages 157-175, June.
    2. Achim Truger, 2015. "Implementing the golden rule for public investment in Europe," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 138, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    3. Ferrara, Maria & Tirelli, Patrizio, 2017. "Equitable fiscal consolidations," Economic Modelling, Elsevier, vol. 61(C), pages 207-223.
    4. Dolls, Mathias & Fuest, Clemens & Kock, Jan & Peichl, Andreas & Wehrhöfer, Nils & Wittneben, Christian, 2014. "Abschlussbericht zu Forschungsvorhaben fe 5/14: "Automatic stabilizers in the Eurozone: Analysis of their effectiveness at the member state and euro area level and in international comparison&quo," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 111444, September.
    5. Truger, Achim, 2015. "Austerity, cyclical adjustment and the remaining leeway for expansionary fiscal policies within the current EU fiscal framework," IPE Working Papers 50/2015, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    6. Achim Truger, 2014. "Austerity, cyclical adjustment and the remaining leeway for expansionary fiscal policies in the Euro area," IMK Working Paper 140-2014, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.

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