The current European fiscal framework is highly complex. The multitude of fiscal rules and the discretion in their enforcement precludes an effective oversight and weakens the effectiveness of fiscal rules substantially. Against this background, we present a proposal for a careful refocusing of...

This paper reviews the main arguments underpinning the reform of the EU's fiscal framework, which has culminated in the adoption by the EU legislators of a revised set of rules for the European economic governance including the Stability and Growth Pact (SGP). It takes a chronological approach...

Europe has put in place a new system of complex fiscal rules. These include the so-called six pack to upgrade the Stability and Growth Pact and a new Treaty incorporating the fiscal compact. Much of the discussion about the new rules has been procedural or theoretical. This paper shows what the...