In for a penny, in for a pound: The enforcement dilemma of EU fiscal rules

Georg Kirchsteiger, Martin Larch

The EU’s Stability and Growth Pact has been struggling with enforcement since inception. Although some Member States honour the EU’s fiscal rules more by their breach than their observance, financial sanctions under the Pact have never been applied. This column argues that their effectiveness is overshadowed by the understanding that, in the event of a major economic shock, virtuous countries will come to their rescue to ensure the survival of the entire system. Unless this underlying issue is addressed, the effectiveness of financial sanctions will remain limited.

Πηγή: Voxeu

πλήρες κείμενο


σχετικά άρθρα