The Stability and Growth Pact: Stability without growth?
Structural reforms and macro-economic policy
Bruxelles : European Trade Union Confederation
69 - 75 p.
With the launch of economic and monetary union (EMU), a new frame-work for the conduct of economic policies in Europe has been implemented. The ECB’s independence, the Stability and Growth Pact (SGP) and the focus on structural reforms show that‘liberal’views have won over ‘Keynesian’ones.The weaknesses of this framework soon emerged, however. The euro area remains a low growth area. Rigid rules lacking economic rationale have induced persistent tensions in Europe.