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Current developments in Greece make clear that the rules of the European Stability and Growth Pact (SGP) were neither strict enough nor enforced strictly enough. To deal with the ongoing fiscal exit and its related phenomena of crisis, we propose a new framework for fiscal policy consolidation...
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The financial crisis of 2007-2009 led to a renewed increase in government deficits and debts in many EU countries, causing a full-fledged fiscal crisis in Greece and severe fiscal pressures in other euro-area countries. This has prompted a series of proposals for improving the fiscal framework...
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The Eurozone faces a fourfold challenge: (1) fiscal support: to provide a credible mechanism for supporting countries … states of the Eurozone credibly commit to sustainable levels of national debt; (3) fiscal autonomy: to permit each member … examine the merits of this proposal in relation to other prominent proposals for dealing with the Eurozone crisis. Finally, we …
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