01 Nov 2004

The Dog that Lost Its Bark: The Commission and the Stability Pact

Thomas Mayer / Daniel Gros / Angel Ubide

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In a new Policy Brief submitted this month to the Monetary Committee of the European Parliament, CEPS Director Daniel Gros and two of his fellow Macroeconomic Policy Group members find that the case for consolidation of government finances against the background of present and prospective demographic changes remains very strong. They argue that the Commission’s recent proposals for reform of the SGP risk watering down the Pact, resulting in an erosion of fiscal discipline.

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