Interpreting the Stability and Growth Pact: Making Best Use of the Existing Flexibility Within the Rules

10/09/2014

In this timely special briefing, Chief Economist Alessandro Leipold explores the limits and best application of flexibility within the existing stability and growth pact. On the basis of a comprehensive analysis of the economic situation in Europe today, he proposes a three-point plan for developing pro-growth policies within the existing rules – and ensuring that the pact continues to play its important role in encouraging fiscal discipline and underpinning market confidence in the euro project. 



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