Le Pacte de stabilité et les politiques budgétaires dans l'Union européenne

Jerome Creel, Thierry Latreille and Jacques Le Cacheux

Revue de l'OFCE, 2002, vol. n° 83 bis, issue 5, 245-297

Abstract: The Stability Pact imposes a 3%-of-GDP ceiling on national budget deficits. However, the yearly national stability programs describing medium-term public finance strategies, based on growth forecasts, have never been implemented in full and have had to be revised every year. In 2001, the economic slowdown has made the gap between commitments and achievements even wider. After presenting national stability programs, we offer an econometric evaluation of national fiscal policy rules in Europe and the US. This estimation also reveals the cyclical component in deficits. We then discuss ways of evaluating deficits to substitute for the current rule while maintaining reasonable discipline and credibility. We conclude that the British « golden rule », but based on the structural budget deficit excluding public investment, would dominate, avoiding pro-cyclical policies and leaving governments sufficient leeway for growth-friendly policies. JEL code : E6.

JEL-codes: E6 (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (53)

Downloads: (external link)
http://www.cairn.info/load_pdf.php?ID_ARTICLE=REOF_074_0245 (application/pdf)
http://www.cairn.info/revue-de-l-ofce-2002-5-page-245.htm (text/html)
free

Related works:
Working Paper: Le pacte de stabilité et les politiques budgétaires dans l’Union Européenne (2002)
Working Paper: Le pacte de stabilité et les politiques budgétaires dans l’Union Européenne (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cai:reofsp:reof_074_0245

Access Statistics for this article

More articles in Revue de l'OFCE from Presses de Sciences-Po
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().