We argue in the present paper that the Stability and Growth Pact and its application can be improved, taking into account the experience gained during the last years. The reform debate should focus on the fundamental economic rationale and the initial orientation of the Pact. It puts more weight...

We argue in the present paper that the Stability and Growth Pact and its application can be improved, taking into account the experience gained during the last years. The reform debate should focus on the fundamental economic rationale and the initial orientation of the Pact. It puts more weight...