[Article] The 2008 financial crisis and Stability and Growth Pact II? Let us move on to SGP III: ‘’A la carte’’

After the 2008 financial crisis, the European Union made some changes to the Stability and Growth Pact (SGP). Will they be sufficient?

Thierry Warin https://www.warin.ca (HEC Montréal and CIRANO (Canada))https://www.hec.ca/en/profs/thierry.warin.html
01-01-2010

Abstract

After the fuzziness in Europe that surrounded the implementation of the excessive deficit procedure foreseen by the Stability and Growth Pact (SGP), the European Union had to restore the credibility of the weakened fiscal rule. The constraint was to keep alive the Treaty of Amsterdam. Indeed, an attempt to make major changes to the SGP would have necessitated a new Treaty. This could have meant no more Europe-wide fiscal rule. But are minor changes enough in light of the 2008 financial crisis? This paper addresses this question by deciphering the amended version of the SGP, and finds that, in the case countries still breach the SGP, another minor change is possible: an ||A la carte|| version of the SGP.

Keywords: European Union; EU; fiscal policy; SGP II; SGP III; Stability and Growth Pact; banking crisis; Treaty of Amsterdam; financial crisis; Euro; business research; economics


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Citation

For attribution, please cite this work as

Warin, "Thierry Warin: [Article] The 2008 financial crisis and Stability and Growth Pact II? Let us move on to SGP III: ''A la carte''", International Journal of Economics and Business Research, 2010

BibTeX citation

@article{warin2010[article],
  author = {Warin, Thierry},
  title = {Thierry Warin: [Article] The 2008 financial crisis and Stability and Growth Pact II? Let us move on to SGP III: ''A la carte''},
  journal = {International Journal of Economics and Business Research},
  year = {2010},
  note = {https://warin.ca/posts/article-2008-financial-crisis/},
  doi = {10.1504/IJEBR.2010.029728}
}