Design and Implementation of the Stability and Growth Pact: The Perspective of New Member States

20 Pages Posted: 2 Aug 2009 Last revised: 18 Sep 2009

See all articles by Fabrizio Coricelli

Fabrizio Coricelli

University of Siena - Department of Political and International Sciences ; Paris School of Economics (PSE); Centre for Economic Policy Research (CEPR)

Date Written: 2005

Abstract

Current developments in the design and management of fiscal rules in the European Union may have negative implications for New Member States. Loosening of the Stability and Growth Pact (SGP) and a growing degree of arbitrariness in its implementation reduce incentives for fiscal adjustment in New Member States, adjustment that would be crucial during the transition to the Eurozone. High budget deficits may prove a serious obstacle in the process of catching up of New Member States to the income levels of EU-15 countries.

Keywords: fiscal rules, Stability and Growth Pact, Economic and Monetary Union

Suggested Citation

Coricelli, Fabrizio, Design and Implementation of the Stability and Growth Pact: The Perspective of New Member States (2005). CASE Network Studies and Analyses No. 304, Available at SSRN: https://ssrn.com/abstract=1441920 or http://dx.doi.org/10.2139/ssrn.1441920

Fabrizio Coricelli (Contact Author)

University of Siena - Department of Political and International Sciences ( email )

Via Mattioli, 10
Siena, 53100
Italy

Paris School of Economics (PSE)

48 Boulevard Jourdan
Paris, 75014 75014
France

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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