What Remains of the Stability Pact and What Next

Lars Calmfors

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European Monetary and Fiscal Policies European Union Policy and Governance Fiscal Policies and Political Economy

Abstract

The Stability and Growth Pact has “more or less collapsed” as a result of the reforms, leading Swedish economist Lars Calmfors told at a lunchtime meeting at Bruegel. Presenting a report on the pact, prepared on behalf of the Swedish Institute for European Policy Studies (Sieps), he was strongly critical of the loopholes introduced for governments reluctant to act decisively to reduce excessive deficits.

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1977Rules Rather than Discretion: The Inconsistency of Optimal Plans 1994Rules, Games, and Common-Pool Resources 2002Political Economics: Explaining Economic Policy 1983Rules, discretion and reputation in a model of monetary policy 1979On the Determination of the Public Debt 1981A Positive Theory of Monetary Policy in a Natural-Rate Model 1981The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics 1990A Positive Theory of Fiscal Deficits and Government Debt

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2012Fiscal Rules, Fiscal Councils and All that: Commitment Devices, Signaling Tools or Smokescreens?2013Policy coordination, conflicting national interests and the European debt crisis 2003A Simple and Flexible Alternative to the Stability and Growth Pact Deficit Ceilings: Is it at Hand?

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