IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-04616543.html
   My bibliography  Save this paper

How stringent would the new Stability and Growth Pact be? And for who?

Author

Listed:
  • Andreas Eisl

    (CEE - Centre d'études européennes et de politique comparée (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, Institut Jacques Delors)

Abstract

This policy brief engages with the ongoing debate on whether – and to which extent – the reform of the Stability and Growth Pact (SGP) will make fiscal adjustment requirements for EU Member States more lenient and flexible. Based on the European Commission's legislative proposal and recently published additional information, the policy brief shows that the new – more country-specific – risk-based approach is actually requiring significant fiscal adjustment from Member States with high debt sustainability risks. In addition, the revamped debt-based excessive deficit procedure is considerably strengthening the enforceability of fiscal adjustment plans. In contrast, fiscal adjustment requirements for lower debt countries are relaxed, highlighting that the new SGP would strongly differentiate between Member States depending on their fiscal sustainability risks. Reform-skeptical countries should be cautious in pushing even stricter consolidation requirements in the forthcoming negotiations. Otherwise, rather than Germany, it might be some of the highdebt countries which could derail the reform process in the end.

Suggested Citation

  • Andreas Eisl, 2023. "How stringent would the new Stability and Growth Pact be? And for who?," Working Papers hal-04616543, HAL.
    • Handle: RePEc:hal:wpaper:hal-04616543
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-04616543
    as

    Download full text from publisher

    File URL: https://sciencespo.hal.science/hal-04616543/document
    Download Restriction: no
    ---><---

    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:hal:wpaper:hal-04616543. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.