Rewarding Compliance with Fiscal Rules - A Proposal for Reform of the Stability and Growth Pact

Wolfram Richter

EconPol Forum, 2023, vol. 24, issue 04, 30-33

Abstract: The European Commission has recently published legislative proposals for a reform of the Stability and Growth Pact (SGP). The declared object is to make the economic governance of the EU simpler, improve national ownership, place a greater emphasis on the medium term and strengthen enforcement However, critics doubt that the proposals are suited to enforce member-state fiscal discipline in the original sense of the SGP This paper argues in favor of shifting the competence to impose sanctions in the event of non-compliant behavior of member states from the Community to the intergovernmental level. Rewarding compliance rather than penalizing non-compliance makes the shift possible Such a reform should help to strengthen the accountability for enforcing fiscal discipline, as well as the credibility of sanction threats The reform would bring the governance framework of the SGP closer to that of the European Stability Mechanism (ESM)

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.cesifo.org/DocDL/econpol-forum-2023-4- ... nce-fiscal-rules.pdf (application/pdf)

Related works:
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:ces:epofor:v:24:y:2023:i:04:p:30-33

Access Statistics for this article

EconPol Forum is currently edited by Chang Woon Nam

More articles in EconPol Forum from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().