Journal Article

Fiscal Policy in Emu: Towards a Sustainability and Growth Pact?

Benoît Coeuré and Jean Pisani-Ferry

in Oxford Review of Economic Policy

Published on behalf of The Oxford Review of Economic Policy Ltd

Volume 21, issue 4, pages 598-617
Published in print January 2005 | ISSN: 0266-903X
Published online January 2005 | e-ISSN: 1460-2121 | DOI: http://dx.doi.org/10.1093/oxrep/gri034
Fiscal Policy in Emu: Towards a Sustainability and Growth Pact?

More Like This

Show all results sharing these subjects:

  • Economic Development and Growth
  • Public Economics
  • Political Economy
  • Public Policy

GO

Show Summary Details

Preview

This paper takes stock of the academic and policy discussions on the fiscal institutions of EMU, confronts the framework in place with what is known of the desirable properties of fiscal policy in a monetary union, and discusses possible improvements. We start with a discussion of three requirements for the fiscal framework of a monetary union: it should be conducive to public finance sustainability, leave room for stabilization at the national level, and encourage structural reform. We then examine how the Stability and Growth Pact (SGP) measures up to these requirements and find that it has mostly failed on all three accounts. Whether the 2005 reform of the SGP fixes those deficiencies remains an open issue. To this end, we propose five building blocks towards an effective SGP: a better concept of sustainability; harmonized general government balance sheets; appropriate targets; refined procedures; and better institutions.

Journal Article.  0 words. 

Subjects: Economic Development and Growth ; Public Economics ; Political Economy ; Public Policy

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.