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L’euro, il patto di stabilità e di crescita e la sua riforma
[The euro, the stability and growth pact and its reform]

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  • Schilirò, Daniele

Abstract

This contribution concerns the European monetary union and single currency, the eur. It addresses the issue of the Stability and Growth Pact and its recent reform by the European Council in March 2005. The debate on the reform of the Pact has focused on the contrast between rules and discretion, and, in particular, the role of fiscal policy, but also on its effect in respect of the ECB's monetary policy. The debate revealed a substantial lack of consensus on fiscal policy. Differences on the conduct of fiscal policy focused on the objectives, instruments and institutions. However, the reform of the Stability and Growth Pact tends to give precedence to an attitude of greater discretion in the conduct of fiscal policy by Member States. This paper highlights the significant critical point, in the new version of the Pact, to tolerate implicitly possible fiscal deficits that can be systematically higher in the euro area countrie. It also underlines the unresolved conflict between two important institutions: the Commission and the Council, and the need for independent institutions that are able to enforce tax rules.

Suggested Citation

  • Schilirò, Daniele, 2006. "L’euro, il patto di stabilità e di crescita e la sua riforma [The euro, the stability and growth pact and its reform]," MPRA Paper 37333, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37333
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    References listed on IDEAS

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    1. Barry Eichengreen, 1992. "Is Europe an Optimum Currency Area?," Palgrave Macmillan Books, in: Silvio Borner & Herbert Grubel (ed.), The European Community after 1992, chapter 8, pages 138-161, Palgrave Macmillan.
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    5. Schilirò, Daniele, 2002. "I criteri del Trattato di Maastricht, l’Europa e l’euro: debito pubblico in Italia e crescita [The criteria of the Maastricht Treaty, Europe and the euro: public debt in Italy and growth]," MPRA Paper 36333, University Library of Munich, Germany.
    6. Woodford, Michael, 2001. "Fiscal Requirements for Price Stability," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(3), pages 669-728, August.
    7. Daniele Schilirò, 2005. "Padoa Schioppa T. (2004), "La lunga via per l'euro"," Economia politica, Società editrice il Mulino, issue 1, pages 161-166.
    8. Paul R. Bergin, 2017. "Fiscal Solvency and Price Level Determination in a Monetary Union," World Scientific Book Chapters, in: International Macroeconomic Interdependence, chapter 12, pages 343-362, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Schilirò, Daniele, 2011. "A new governance for the EMU and the economic policy framework," MPRA Paper 32235, University Library of Munich, Germany, revised Jul 2011.
    2. Schilirò, Daniele, 2007. "La crescita in Italia dopo l’euro: quali riforme? [Growth in Italy after the euro: which reforms?]," MPRA Paper 39482, University Library of Munich, Germany.
    3. Daniele, Schilirò, 2009. "L’Italia e il problema della crescita dopo l’euro [Italy and the problem of growth after the euro]," MPRA Paper 81985, University Library of Munich, Germany.
    4. Schilirò, Daniele, 2012. "The crisis of euro’s governance: institutional aspects and policy issues," MPRA Paper 40861, University Library of Munich, Germany.

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    More about this item

    Keywords

    Patto di Stabilità e Crescita; politica fiscale; euro; Unione monetaria europea;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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