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Main Aspects of the Working of the SGP

António J. Cabral

Chapter 6 in The Stability and Growth Pact, 2001, pp 139-157 from Palgrave Macmillan

Abstract: Abstract The Stability and Growth Pact (SGP) has attracted much attention since the idea was first floated by Finance Minister Waigel late in 1995. Naturally, as highlighted in Chapters 2 and 3 above, there is not an unanimous view on the Pact: for some it is not necessary; for others the Pact is necessary but the way it was built is not satisfactory; finally, there are also those who consider that the Pact is a sinister construction which will, necessarily, lead to ever-increasing unemployment in the EU. This chapter will not focus on these issues; indeed it is our firm conviction that the full benefits of the single currency can only be harvested if fiscal discipline, which remains under the responsibility of each individual member state, is secured. The author of this chapter therefore belongs to those who consider that the Pact is a positive, if not fundamental, complement to the Maastricht Treaty (Cabral, 1997). This does not mean that the implementation of the Pact is not without problems and difficulties.

Keywords: Member State; Debt Ratio; Council Decision; Automatic Stabiliser; Government Deficit (search for similar items in EconPapers)
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62926-4_6

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DOI: 10.1057/9780230629264_6

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