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Stability Pact for Hungary? Rise of Third Generation Reforms

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  • István Benczes

Abstract

Accession to the European Union is the clearest symbol of globalisation for a country in transition. The integration process does not represent purely regional values, but globalised ones as well, which are widely shared in the developed or globalising part of the world. In order to be fully integrated into the EU, the initiation of the so-called third generation reforms is required. On this basis the study argues that a Stability Pact can be an effective means to constrain deviant behaviour and to enforce fiscal discipline not just within a monetary union but also within a transitional country as well, by blocking the consequences of rash judgements stemming from cyclical changes in politics.

Suggested Citation

  • István Benczes, 2001. "Stability Pact for Hungary? Rise of Third Generation Reforms," CERT Discussion Papers 0103, Centre for Economic Reform and Transformation, Heriot Watt University.
    • Handle: RePEc:hwe:certdp:0103
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    More about this item

    Keywords

    Stability and growth pact; European integration; transformation; enlargement;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F15 - International Economics - - Trade - - - Economic Integration
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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