When the Euro was introduced in the EU, the Stability and Growth Pact (SGP) was one of the cornerstones of the architecture of fiscal policy in the Economic and Monetary Union (EMU). But the discussion about the necessity and functioning of the specific SGP fiscal rule never stopped since then. The call for a reform of the pact got momentum since many Member States of the euro area broke the regulations of the pact at least once. The reform of the SGP succeeded in 2005.In this book, renowned lawyers and economists from all over Europe present their views about the legal and economic foundations of the SGP and its performance so far. The major part of the book deals with the economic problems with the pact, its theoretical basis, possible improvements and the implications of the reformed SGP. The book has the advantage not only to report and analyze the experiences with the old SGP but it offers also a first ex ante assessment of the future aspects of the reformed SGP.These and other highly relevant issues make this book indispensable for everybody who is concerned with European integration and the functioning of EMU in particular.

When the Euro was introduced in the EU, the Stability and Growth Pact (SGP) was one of the cornerstones of the architecture of fiscal policy in the Economic and Monetary Union (EMU). But the discussion about the necessity and functioning of the specific SGP fiscal rule never stopped since then. The call for a reform of the pact got momentum since many Member States of the euro area broke the regulations of the pact at least once. The reform of the SGP succeeded in 2005.In this book, renowned lawyers and economists from all over Europe present their views about the legal and economic foundations of the SGP and its performance so far. The major part of the book deals with the economic problems with the pact, its theoretical basis, possible improvements and the implications of the reformed SGP. The book has the advantage not only to report and analyze the experiences with the old SGP but it offers also a first ex ante assessment of the future aspects of the reformed SGP.These and other highly relevant issues make this book indispensable for everybody who is concerned with European integration and the functioning of EMU in particular.