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A reform that can be done: improving the Stability and Growth Pact
Olivier Blanchard and Francesco Giavazzi argue that the EU does not have to wait for a
new Treaty to be ratified in order to reform the Stability and Growth Pact.
If public investment is accounted for properly, the rules governing the Pact need not change. ...more
Hilary Beech
Chief Executive Officer of CEPR
Observers of the European economy find themselves faced with a particularly
rich context at the present time. Against the backdrop of a global economic
slowdown, with sluggish growth in many of Europe's economies, France, Germany,
Italy and Portugal have been given more time to balance their books by the
European Commission, a relaxing of the rules of the rigorous Stability and
Growth Pact. Meanwhile, the Commission has recommended that the ten
front-runner accession candidates be allowed to join the European Union.
Fears that the Irish people might derail this long-planned enlargement
effort by voting against the Treaty of Nice proved unfounded when the "Yes"
campaign triumphed on October 19th. Now, the real challenges of defining a
realistic plan for integration of so many new member states lie ahead.
Valéry Giscard-d'Estaing continues to lead the European Convention,
responsible for proposing new ways of adapting and renovating Europe's
institutional and political framework, not only with the enlargement in view,
but also in part to allow Europe to exert a stronger influence in the governance
of the global economy. ...more
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