Reforming the Stability and Growth Pact /

A rules-based fiscal framework, such as the EU's Stability and Growth Pact (SGP), can be an important bulwark against short-sighted policies. Although policies have improved following the SGP's adoption, shortcomings remain. These, however, are rooted in the policies rather than the rules,...

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Bibliographic Details
Main Author: Annett, Anthony
Other Authors: Decressin, Jorg, Deppler, Michael
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2005.
Series:IMF Policy Discussion Papers; Policy Discussion Paper ; No. 2005/002
Online Access:Full text available on IMF
Description
Summary:A rules-based fiscal framework, such as the EU's Stability and Growth Pact (SGP), can be an important bulwark against short-sighted policies. Although policies have improved following the SGP's adoption, shortcomings remain. These, however, are rooted in the policies rather than the rules, where few changes seem necessary. Specifically, the Excessive Deficit Procedure needs a stronger focus on policies rather than outcomes, while staying operationally simple and transparent. Furthermore, reforms are needed to foster time-consistent national policies, budgetary transparency, and ownership of the Pact. Accordingly, parliaments should debate national Stability Programs and national fiscal councils should review these programs for parliaments.
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Physical Description:1 online resource (28 pages)
Format:Mode of access: Internet
ISSN:1934-7456
Access:Electronic access restricted to authorized BRAC University faculty, staff and students