EU Economic Governance: Less Might Work Better Than More

Files in This Item:
File Description SizeFormat 
WP10_41.pdf746.22 kBAdobe PDFDownload
Title: EU Economic Governance: Less Might Work Better Than More
Authors: Whelan, Karl
Permanent link:
Date: Dec-2010
Abstract: The European Commission has recently proposed a new package of reforms of the Stability and Growth Pact. The package contains a number of good proposals. In particular, the increased focus on debt ratios is a very positive suggestion though this should be strengthened further. However, some of the other proposals, such as the new principle of prudent fiscal management and the scoreboard for non-fiscal imbalances, are poorly thought out and perhaps unworkable. A smaller number of well-focused proposals may end up working better than this complex, and perhaps overly ambitious, package. And a coherent policy to allow for orderly sovereign defaults in Euro area member states would probably place more pressure, via bond markets, on states to get their fiscal houses in order than would the proposed system of fines.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Keywords: Stability and Growth PactNational debtNational fiscal frameworks
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

Show full item record

Google ScholarTM


This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.