Work

Reforming the Stability and Growth Pact

Year: 2005

Type: preprint

Abstract: A rules-based fiscal framework, such as the EU’s Stability and Growth Pact (SGP), can be an important bulwark against short-sighted policies. Although policies have improved following the SGP’s adoption, shortcomings remain. These, however, are rooted in the policies rather than the rules, where few changes seem necessary. Specifically, the Excessive Deficit Procedure needs a stronger focus on policies rather than outcomes, while staying operationally simple and transparent. Furthermore, reforms are needed to foster time-consistent national policies, budgetary transparency, and ownership of the Pact. Accordingly, parliaments should debate national Stability Programs and national fiscal councils should review these programs for parliaments.

Source: SSRN Electronic Journal

Authors: Fabian Amtenbrink, Jakob de Haan

Institutions: Erasmus University Rotterdam, Ifo Institute for Economic Research, University of Groningen, De Nederlandsche Bank

Language: English

Topic: European Monetary and Fiscal Policies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1522866561

Cites:

Cited by: 78

Related to: 10