Download or read book Fiscal Discipline in EMU Testing the Effectiveness of the Excessive Deficit Procedure written by Jasper de Jong and published by . This book was released on 2018 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Excessive Deficit Procedure (EDP), central to the Stability and Growth Pact, is criticized for both its procyclical effects and - in contrast - a perceived lack of enforcement. To test its actual effects, we construct a real-time database of EDP recommendations and estimate augmented real-time and ex-post fiscal reaction functions for a panel of EMU member states. We find that a 1% of GDP larger EDP recommendation leads to close to 1% of GDP of additional fiscal consolidation plans, and around 0.8% of actual consolidation. For countries in financial support programs we find that, while they did implement substantial consolidation measures, required and delivered consolidation efforts are less connected. Overall, our results suggest that EDP recommendations have substantially shaped euro area fiscal policy, especially in the years 2010-2014, when EDP recommendations were both largest and most frequent.
Download or read book Do Balanced Budget Rules Work written by Robert P. Inman and published by . This book was released on 1996 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: The `Excessive Deficit Procedure' of the Maastricht Treaty on Economic and Monetary Union proposes two fiscal convergence conditions for entry and continued membership in the EMU: 1) a country's overall budget deficit for each fiscal year must be equal to or below 3% of GDP, and 2) a country's stock of gross public debt must be equal to or less than 60% of GDP. Will the current EMU Excessive Deficit Procedure work as an effective constraint on countries' deficit behaviors? When understood within the context of a political economy model of deficit behavior, recent U.S. evidence on balanced budget rules strongly suggests that effective deficit constraints must use ex post deficit accounting, must be constitutionally grounded, must be enforced by an open and politically independent review panel or court with significant sanctions for violations, and costly to amend. While ex post, constitutionally grounded, and difficult to amend, current EMU rules are not enforced, at present, by an open and politically independent review panel using significant penalties. The ability of the EMU's deficit procedure to constrain in doubt. Institutional reforms that will strengthen the EMU's balanced budget procedures are discussed.
Download or read book The Framework for Fiscal Policy in EMU written by Carmen Elena Flores and published by . This book was released on 2005 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Is there a structural or a political fault in the fiscal governance of the EU written by Tom Wan and published by GRIN Verlag. This book was released on 2016-09-28 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thesis (M.A.) from the year 2012 in the subject Politics - Topic: European Union, grade: Merit, London School of Economics (European Institute), course: Politics and Government in the EU, language: English, abstract: The non-compliance to the Stability and Growth Pact in the early 2000’s was a direct challenge to the co-operative virtue of EU fiscal governance, and the fact that its occurrence played little role in affecting the stability for Europe’s most significant achievement yet – the Single Currency – was in itself a truly peculiar incident. Betrayed by the deeds of the two locomotives of the European Project, Germany and France, only four years after the adoption of the Euro – yet the currency strides on and none of the adverse effect that Economists feared had happened. But was that it? The fact that both of these nations could escape sanction by coercing other nations in debt to vote against a punishment for their excessive fiscal deficit announced a deep functional fault in the enforcement of agreed EU treaties on the Commission’s part; and knowing that the stability of the Euro hinged upon an incomplete fiscal federation where fiscal responsibility laid heavily on the shoulders of the member states, there was indeed a commitment crisis exhibiting itself in 2003. This paper aimed to answer two questions: first, what have caused the member states, such as France and most curiously, Germany, the one who had stressed the need for fiscal discipline every step of the way during the negotiation stage to safeguard the Euro, to renegade on a pact that was supposed to guarantee just that? Second, in light of the silence of the international capital market towards the incident, what, if any, had the demise of EDP contributed to the study of fiscal governance and political integration in the EU?
Download or read book Economic Policy in EMU written by Marco Buti and published by Oxford University Press. This book was released on 1998 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the advent of the third and final phase of European and Monetary Union (EMU), the debate over European monetary unification is at the top of the political and economic agenda. Much has been written over the past five years about whether EMU is justified given the various expected benefitsand prospective costs, but there has been little detailed material on how EMU will work and what the practical implications of it will be for Europe as a whole. Economic Policy in EMU is a comprehensive look at the mechanisms involved, likely effects on monetary and budgetary policy, and the ways in which monetary union will deal with and affect business cycles and regional differences. It combines rigorous analysis of how the European economy works withan insider view of how this will change after 1999: as such, it is vital reading for all involved in the most important topic facing Europe today.
Download or read book Fiscal Policy Without a State in EMU written by Jani Kaarlejärvi and published by Palgrave MacMillan. This book was released on 2007-10-26 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines fiscal policy coordination in EMU and the required adjustments to national fiscal policies by EMU member states. It presents a coherent view of German fiscal policy following the creation of the Stability and Growth Pact in 1995-97 and the implementation of the Stability Pact in 1997. The book shows that, in the process of Europeanization, national interests have had a major impact on the formation of fiscal policy coordination. It also shows how European fiscal policy coordination has affected national fiscal policies and policy implementation in EMU, and how changes in national interests have finally launched the reform process of the original Stability Pact and a new phase or Europeanization.
Download or read book Monetary and Fiscal Policies in EMU written by Marco Buti and published by . This book was released on 2003 with total page 254 pages. Available in PDF, EPUB and Kindle. Book excerpt: Leading scholars and policy makers examine the challenges that are facing economic policies in the EMU today.
Download or read book Economic Governance in the European Union Fiscal Policy Discipline versus Flexibility written by Fabian Amtenbrink and published by . This book was released on 2011 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This contribution examines fiscal policy co-ordination in the Economic and Monetary Union (EMU) and discusses whether the amendments of the Stability and Growth Pact proposed in the past, some of which have since been implemented, enhance budget discipline. In doing so, it provides a detailed analysis of the legal provisions on multilateral surveillance and the excessive deficit procedure based on the concepts of open and closed method of coordination. Arguably, it is the mixing of these two distinct concepts which stands at the heart of the current controversies. This has to be taken into account when assessing the recent proposals to introduce greater flexibility. Indeed, rather than introducing more flexibility, the analysis of the current system presented in this contribution suggests that those elements of economic coordination which prevent the existing rules from being implemented properly should be amended, thereby to some extent depoliticising economic coordination. The contribution begins with a discussion of the fiscal policy rules previously in place, followed by a political-economy analysis of these rules. Thereafter the reform proposals of the Commission, as well as other proposals for institutional reforms, including those originally foreseen in the Treaty establishing a Constitution for Europe, are examined. It is concluded that the reforms of the pact do little to redress the failure of some Member States to consolidate their public finances in times of economic prosperity.
Download or read book The Transition to EMU in the Maastricht Treaty written by Lorenzo Bini Smaghi and published by . This book was released on 1994 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Cambridge Handbook of European Monetary Economic and Financial Integration written by Dariusz Adamski and published by Cambridge University Press. This book was released on 2023-10-12 with total page 974 pages. Available in PDF, EPUB and Kindle. Book excerpt: Written by experts in the field, this volume offers an in-depth and forward-looking legal, economic, and political science analysis of the rationale, main features, as well as the shortcomings of European economic, monetary, and financial integration. It is primarily intended for an academic audience and policymakers.
Download or read book Treaty on the Functioning of the European Union a Commentary written by Robert Böttner and published by Springer Nature. This book was released on 2023 with total page 1510 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Commentary on the Treaty on the Functioning of the European Union (four volumes) is a major European project that aims to contribute to the development of ever closer conceptual and dogmatic standpoints with regard to the creation of “Europeanised research on Union law”. Following on from the Commentary on the Treaty on European Union, this book presents detailed explanations, article by article, of all the provisions of the TFEU, discussing the application of Union law in the national legal orders and its interpretation by the Court of Justice of the EU. The authors are academics and practitioners from all across Europe and different legal traditions, some from a constitutional law background, others experts in the field of international law and EU law. Reflecting the various approaches to European legal culture, this book promotes a system concept of European Union law toward more unity notwithstanding its rich diversity grounded in national traditions.
Download or read book Research Handbook on the Enforcement of EU Law written by Miroslava Scholten and published by Edward Elgar Publishing. This book was released on 2023-09-06 with total page 581 pages. Available in PDF, EPUB and Kindle. Book excerpt: This comprehensive Research Handbook investigates the success of EU law enforcement processes. Going beyond traditional analyses of administrations and courts in isolation, it focuses on the increased cooperation seen between national and EU authorities, and on the widening variety of means used to enhance compliance with EU norms.
Download or read book What Do Deficits Tell Us About Debt Empirical Evidence on Creative Accounting with Fiscal Rules in the EU written by Jürgen von Hagen and published by . This book was released on 2016 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fiscal rules, such as the excessive deficit procedure and the stability and.
Download or read book Reforming Fiscal Governance in the European Union written by Michal Andrle and published by International Monetary Fund. This book was released on 2015-05-21 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Successive reforms have brought many positive elements to the European Union’s fiscal framework. But they have also increased its complexity. The current system involves an intricate set of fiscal constraints, which hampers effective monitoring and public communication. Compliance has also been weak. This note discusses medium-term reform options to simplify the framework and improve compliance. Based on model simulations and practical considerations, it argues for moving to a two-pillar approach, with a single fiscal anchor (public debt-to-GDP) and a single operational target (an expenditure growth rule, possibly with an explicit debt correction mechanism) linked to the anchor.
Download or read book Second Generation Fiscal Rules written by Luc Eyraud and published by International Monetary Fund. This book was released on 2018-04-13 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fiscal rule frameworks have evolved significantly in response to the global financial crisis. Many countries have reformed their fiscal rules or introduced new ones with a view to enhancing the credibility of fiscal policy and providing a medium-term anchor. Enforcement and monitoring mechanisms have also been upgraded. However, these innovations have made the systems of rules more complicated to operate, while compliance has not improved. The SDN takes stock of past experiences, reviews recent reforms, and presents new research on the effectiveness of rules. It also proposes guiding principles for future reforms to strike a better balance between simplicity, flexibility, and enforceability. Read the blog
Download or read book The European Monetary Union written by Nicola Acocella and published by Cambridge University Press. This book was released on 2020-08-27 with total page 489 pages. Available in PDF, EPUB and Kindle. Book excerpt: Analyzes the roots of Europe's economic decline, examining institutions of the European Union and exploring possibilities for reform.
Download or read book The European Sovereign Debt Crisis written by Phoebus L. Athanassiou and published by Routledge. This book was released on 2021-08-23 with total page 165 pages. Available in PDF, EPUB and Kindle. Book excerpt: The European Sovereign Debt Crisis: Breaking the Vicious Circle between Sovereigns and Banks explains why the euro area’s progress towards reining in the risks arising from the well-documented bi-directional financial contagion transmission mechanism that links sovereigns to commercial banks has been more prominent compared to the channel of contagion moving from banks to sovereigns. Providing an analysis of the legal and regulatory measures that Europe and the euro area have taken to mitigate the exposure of sovereigns to financial crises generated by commercial banks, this book draws attention to areas where improvements to the arsenal of tools hitherto introduced are either desirable or necessary. Chapters further explain – with recourse to economic and legal arguments – why the channel of contagion moving from sovereigns to commercial banks has proven harder to close, and explores ways in which progress could be made in the direction of closing it so as to avert the risk of future banking sector crises. This work provides essential reading for students, researchers and practitioners with an interest in sovereign debt crises and the euro-area banking system.
