Appendix 6 : The New Member States and the Stability and Growth Pact : Needs for adapting in the prospect of euro area membership

9 This Commission’s proposal was subject to criticisms from the Economic and Financial Committee, which sees in it a risk of budgetary leniency (unpublished report, 12 February

More speci fi cally, the public social norm we consider in this paper is the Stability and Growth Pact (SGP), signed in 1997 by the countries participating in the European

A simple modification of the current setup, namely excluding public investment from deficit figures (the so called golden rule of public finances) would allow removing such a

On one side, some argue that a government running a budget deficit has to borrow; in a monetary union this is supposed to raise the common interest rate, and to have adverse

Why wasn’t the golden rule for public finance considered, or a deficit stabilising public debt at a reasonable level (i.e. a structural deficit objective of around 2% for a country

2.1.2 The scarcity of rules related to the control over Euro summits 32 2.1.3 Information sharing: the devil is in the details 32 2.1.4 The recent trends in

The fact that the European economic constitution (the common market and policy rules of EU member states) gives small countries the advantage of trade while not allowing

Within the euro area, the combination of a cyclical adjustment with taking public investment out of the deficit ceiling would lead to adopting a fiscal rule that would have a