Reforming the Stability and Growth Pact

In this multidisciplinary contribution the authors argue both from a normative and economic perspective that the 2005 reform of the European Stability and Growth Pact, which is limited to an amendment of secondary Community law, cannot remedy the basic shortcomings of the rules on economic coordination in EMU in place. Although the reform results in some stricter obligations for the Member States and a sharpening of the multilateral surveillance procedure, a more flexible approach in dealing with excessive deficits in the Member States is introduced. As some of the new Member States, are likely to join the ranks of some of the old Member States, especially the large ones, in frequently running excessive deficits, lack of enforcement is aggravated