The ECB monetary policy has been criticised for giving more attention to price stabilisation in Europe rather than encouraging higher growth and employment. It is now largely accepted that the Maastricht norms and the Stability Pact have imposed serious macroeconomic constraints on economic...

This paper attempts to measure the direct effects of the Maastricht criteria and the Stability Pact on growth and unemployment in the EU countries, and covers the period 1980-2001. The evidence from a panel empirical analysis suggests that growth was negatively influenced by the imposition of...