Réformer le Pacte de stabilité: l'état du débat

Henri Sterdyniak () and Catherine Mathieu ()

Abstract: 'Reforming the Stability and Growth Pact: where do we stand ? Reforming the SPG has become a highly debated issue in Europe. This parper starts with recalling the fiscal policy framework in the euro area: the 3% of GDP limit for public deficits, stability programmes, the broad economic policy guidelines. The weaknesses of the existing procedures are addressed: the arbitary nature of th criteria, the lack of economic policy co-ordination. We discuss the propositions recently made by the Commission to strengthen its influence on national fiscal policies. We then deal with several other propositions: budgetary federalism, golden rule of public finances, budgetary policy committees, public debt rather than deficits surveillance. Finally, we present our proposal: national budgetary policies would be responsilbe for managing the inflation- production trade off, under a medium term inflation objective, while monetary policy would target interest rates.

JEL-codes: E6 (search for similar items in EconPapers)
Date: 2004-11-26
Note: Type of Document - pdf; pages: 35. Text in French. Revue de l'OFCE, n° 84, janvier 2003.
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