Twenty years of Stability and Growth Pact
Journal Title: The Review of Finance and Banking - Year 2017, Vol 9, Issue 1
Abstract
The year 2017 marked a quarter of a century since the fiscal discipline was embedded in the EU legislation and the 20th anniversary of the Stability and Growth Pact. The figures published by the European Commission in autumn 2016 revealed modest growth in challenging times, budget balance of 2% and gross debt of 86% in the EU. The economic governance framework evolved significantly since its creation in order to accommodate the economic and political developments, as well as the lessons learned: from focus on deficit and debt (in fact more on the deficit) to a larger range of macroeconomic indicators; from strict rules to flexibility and focus on national specificities; again to stricter rules to move afterwards towards growth oriented approach. The results of this framework implementation were limited by the lax implementation and the different developments in Euro Area and Non-euro member states prove not only that one size fits all measures are not suitable, but also that the Economic and Monetary Union needs changes in order to smoothly function in the future. This paper analyses the evolution of the European economic governance framework and its effects on public finance.
Authors and Affiliations
Sandina Maria Jeloaica
Keywords
Related Articles
- EP ID EP592211
- DOI -
- Views 234
- Downloads 0
Generalized Hyperbolic Distributions: Empirical Evidence on Bucharest Stock Exchange
Onfive of the most liquid and important equities of the Romanian stock market together with the market index is investigated the fit of the generalized hyperbolic distributions. The parameters of the hyperbolic distribut...
An Empirical Investigation of the Firm- and Country- Specific Debt Determinants in Four Nordic Countries
This work adds to the debate on the determinants of debt-equity mix providing new insights for four Nordic countries - Denmark, Finland, Norway and Sweden, less studied in the existing literature. Using a sample of 79 co...
"I'll Think about it Tomorrow": Price Drifts Following Large Pre-Holiday Stock Price Moves
The study explores the holiday effect on large daily stock price changes and on subsequent stock returns. The motivation for the study is based on the Mood Maintenance Hypothesis and on the literature documenting lower s...
Output Spillovers from Trade and Financial Linkages in Central and Eastern European Countries: A Panel Analysis
This paper studies the impact of international trade and foreign direct investments on economic growth in Central and East European countries using static and dynamic panel data estimation methods. The results mostly poi...
Does Exchange Rate Affect Remittances in Nigeria?
The size and rate of remittances to Nigeria are remarkable. However, theories do not unanimously pin down the effects of exchange rate on remittances. Employing a simple choice-theoretical model, it was discovered that r...