IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-62926-4_2.html
   My bibliography  Save this book chapter

Does EMU Need a Stability Pact?

In: The Stability and Growth Pact

Author

Abstract

Fiscal rules are at the centre of the public policy debate. For example, in the United States, some years ago an attempt to impose a federal balanced-budget requirement only very narrowly failed to win Senate approval. New Zealand has its Fiscal Responsibility Act and the United Kingdom has its Code for Fiscal Stability. For the European Union members, the Maastricht Treaty imposes budgetary entrance criteria for participation in European Monetary Union (EMU). In particular, budget deficits should not be higher than the reference level of 3 per cent of GDP and (gross) public debt should not be higher than its reference level of 60 per cent of GDP. When these limits are exceeded, the actual values of the deficit or debt ratio should be close to their reference values and falling at a satisfactory pace. In fact, countries are supposed to adhere to these criteria not only before they enter EMU, but also when they already participate in EMU.

Suggested Citation

  • Roel Beetsma, 2001. "Does EMU Need a Stability Pact?," Palgrave Macmillan Books, in: Anne Brunila & Marco Buti & Daniele Franco (ed.), The Stability and Growth Pact, chapter 2, pages 23-52, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-62926-4_2
    DOI: 10.1057/9780230629264_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-62926-4_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.