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- What is the stability and growth pact?
Germany - yes, the main instigator of the pact - and France have been stuck in recession or stagnation for the past three years. With their economies stagnant, tax receipts are down, while public spending in terms of unemployment benefits have gone up.
Are Germany and France being punished? Theoretically, Germany and France faced big fines on the recommendation of the European commission.
What is the stability and growth pact? | Business | The Guardian
But imposing financial penalties when they're already mired in economic problems made little sense. So the commission this week recommended that Germany and France bring their deficits under control by next year. Were those recommendations accepted? The EU's council of finance ministers - which includes Gordon Brown, the UK chancellor - brushed aside the commission's recommendation and gave the eurozone's two largest economies an extra year's grace.
Is the pact dead? It certainly is in intensive care and will probably have to be changed.
Germany wants to draw up additional EU fiscal rules that will lead to a "better interpretation" of the pact, allowing more account to be taken of the economic situation, the impact of ageing on social security systems and the role played by public investment in modernising the economy. Mr Brown has consistently criticised the pact for its rigidity.
In Mr Brown's economic framework, countries should be allowed to run deficits in bad times provided they accumulate surpluses in good times. The legislation was supplemented by two regulations in The inter-governmental Fiscal Compact entered into force on 1 January The related legislation is supplemented by Code of Conduct clarifying the application of the law. Parameters underlying the Commission's cyclical adjustment methodology. Economic Papers " PDF.
What is the stability and growth pact?
Decomposition of the semi-elasticity of budget balance to output gap. Retrieved 5 February Structural balance of general government - Adjustment based on potential GDP Excessive deficit procedure ". Check date values in: Structural balance recalculated by the European Commission according to the submitted programmes in early Federal Ministry of Finance. Republic of Bulgaria - Ministry of Finance. Ministry of Finance Czech Republic. Updated programme for the period " PDF. Comparison of key macroeconomic and budgetary projections.
Finlands Ministry of Finance. HR Ministry of Economic and Finance. Hellenic Republic Ministry of Finance.
Government of the Republic of Hungary. Ministry of the Economy and Finance. Ministry of Finance of the Republic of Latvia.
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Latvian Ministry of Finance. Government of the Republic of Lithuania. Maltese Ministry of Finance. Stability Programme " PDF. Ministry of Finance of the Slovak Republic. Convergence Program update" PDF. The Republic of Slovenia. Updated values of the minimal benchmarks for the 25 EU Member States. Council of the European Union. Retrieved 3 June Croatian Ministry of Finance. Assessment of the economic programme for Croatia" PDF. Retrieved 30 April Official Journal of the EU. Assessment of the national reform programme and stability programme for Greece" PDF.
Irish Department of Finance. Government of Grand-Duchy of Luxembourg. Stability Programme amendments" PDF. Government Offices of Sweden. Sweden's Ministry of Finance.
Assessment of the action taken by the United Kingdom in response to the Council Recommendations of 2 December with a view to bringing an end to the situation of excessive government deficit" PDF. Proposed eurobonds Reserve currency Petroeuro World currency. Andorra Monaco San Marino Vatican. British pound sterling incl. Euro portal European Union portal Numismatics portal. Retrieved from " https: