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Lars Jonung. Photo.

Lars Jonung

Professor emeritus

Lars Jonung. Photo.

Stability and Growth Pact of the European Union, the

Author

  • Martin Larch
  • Lars Jonung

Summary, in English

While fiscal policy making in the EU is in the hands of national governments, it is to be carried out in accordance with commonly agreed rules: the Stability and Growth Pact (SGP). The SGP originates in the understanding that uncoordinated fiscal policy produces cross-border effects that can harm the functioning of the Economic and Monetary Union. For member states with an excessive deficit, that is, a general government deficit of more than 3 % of GDP, the SGP rules are more invasive. Since its inception in 1997, the SGP has undergone a series of amendments aimed at improving fiscal governance in the EU.

Department/s

  • Department of Economics

Publishing year

2016-11-29

Language

English

Publication/Series

The New Palgrave Dictionary of Economics

Document type

Article in encyclopedia

Publisher

Palgrave Macmillan

Topic

  • Economics

Keywords

  • automatic stabilisers
  • discretionary fiscal policy
  • excessive deficit procedure
  • fiscal policy making
  • E6
  • H3
  • H6

Status

Published

ISBN/ISSN/Other

  • ISBN: 978-1-349-95121-5