|Author (Person)||Bertoncini, Yves, Fernandes, Sofia|
|Publisher||Jacques Delors Institute [Notre Europe]|
The positions adopted by the French and Italian authorities in 2014 concerning the 3% of public deficit threshold have imparted a fresh boost to the recurring debate on the Stability and Growth Pact, which former Commission President Romano Prodi once called a 'stupid' pact.
1. The Stability and Growth Pact is not a dogma carved in stone
If the Stability Pact is not completely stable, it is not completely stupid either. Let those countries in difficulty set their economies back on track, let them make choices designed to bring down unemployment and to boost growth – the rest 'will be added to them'.
[The Stability and Growth Pact (SGP) is a rule-based framework for the coordination of national fiscal policies in the European Union. It was established to safeguard sound public finances, based on the principle that economic policies are a matter of shared concern for all Member States. The Macroeconomic Imbalances Procedure (MIP) operates alongside the SGP to identify and correct macroeconomic imbalances and monitor competitiveness developments]
|Subject Categories||Economic and Financial Affairs|
|Countries / Regions||Europe|