<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>There is no getting around a reform of the European Stability and Growth Pact. However, there is no reform model under discussion that can be expected to enforce compliance with public budget discipline more effectively than before. With this in mind, this paper argues in favour of shifting the competence to impose sanctions in the event of non-compliant behaviour from the community level to the intergovernmental level. This would increase the credibility of the sanction threat. The shift would not mean abandoning the previously introduced fiscal rules.</p>
</abstract>

There is no getting around a reform of the European Stability and Growth Pact. However, there is no reform model under discussion that can be expected to enforce compliance with public budget discipline more effectively than before. With this in mind, this paper argues in favour of shifting the competence to impose sanctions in the event of non-compliant behaviour from the community level to the intergovernmental level. This would increase the credibility of the sanction threat. The shift would not mean abandoning the previously introduced fiscal rules.

Solidarity-Based Redemption of Government Debt in the Euro Area – A Proposal for Reform of the Stability and Growth Pact

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Solidarische Tilgung der Staatsschulden im Euroraum

Ein Vorschlag zur Reform des Stabilitäts- und Wachstumspakts

There is no getting around a reform of the European Stability and Growth Pact. However, there is no reform model under discussion that can be expected to...

Solidarity-Based Redemption of Government Debt in the Euro Area – A Proposal for Reform of the Stability and Growth Pact

Publié en ligne: 14 mai 2023

Pages: 276 - 279

DOI: https://doi.org/10.2478/wd-2023-0081

© 2023 Wolfram F. Richter, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.