Intereconomics

, Volume 42, Issue 4, pp 218–225 | Cite as

The "New" Stability and Growth Pact: More Flexible, Less Stupid?

  • Rui Henrique Alves
  • Oscar Afonso
FISCAL POLICY

The doubts and criticisms with regard to the fiscal discipline imposed by the Stability and Growth Pact (SGP) have been many and varied, and the SGP was revised as a result. The following paper evaluates the changes contained in the "new" SGP by considering the properties for ideal fiscal rules put forward by Kopits and Symansky. The analysis points towards a clear increase in flexibility together with the probable emergence of new enforcement problems. In this context, the need for new improvements within the European framework for the definition and implementation of national fiscal policies is discussed.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2007

Authors and Affiliations

  • Rui Henrique Alves
    • 1
  • Oscar Afonso
    • 2
  1. 1.Faculty of EconomicsUniversity of Porto, and Researcher, CEMPREPortoPortugal
  2. 2.Faculty of EconomicsUniversity of Porto, and Researcher, CEMPREPortoPortugal

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