Abstract
The fiscal requirement emerging from Maastricht is that governments should have a substainable financial position. A limit of 60% for the debt/GNP ratio and of 3% for the total deficit/GNP ratio is considered consistent with this requirement. The concept of sustainability appears to be the only common objective for fiscal policy. As pointed out, by Bean [5] 1 these rules are not entirely satisfactory. A ‘reasonable’ upper limit for the debt/GNP ratio2 is, however, intended to prevent debt monetization “à la” Sargent and Wallace [29] or confidence crises’ of the kind studied by Giavazzi and Pagano [19] .
Financial support from MURST is gratefully acknowledged. The paper was presented at the congress on World Economic Trends and European Integration, held in Rome, in May 1992. Since then the scenario of European integration has dramatically changed. We feel, however, that the basic points we intended to make are consistent with subsequent developments. Accordingly, the paper has not been revised.
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© 1996 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Luzenberger, R.d., Imbriani, C., Marini, G. (1996). Sustainability Issues in the Process of European Integration. In: Baldassarri, M., Imbriani, C., Salvatore, D. (eds) The International System between New Integration and Neo-Protectionism. Central Issues in Contemporary Economic Theory and Policy. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-24664-9_2
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