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The Euro`s Fundamental Flaws
... single currency meant that the individual member countries lost the ability to control monetary policy and interest rates in order to respond to national economic conditions. It also meant that each country’s exchange rate could no longer respond to the cumulative effects of differences in productiv ...
... single currency meant that the individual member countries lost the ability to control monetary policy and interest rates in order to respond to national economic conditions. It also meant that each country’s exchange rate could no longer respond to the cumulative effects of differences in productiv ...
Euro area recovery still lacks momentum
... fiscal stance is not a particularly useful concept since it abstracts from too much relevant information at the country level. In particular, excessive stimulus in one country is likely to generate welfare losses there, since this may compromise fiscal sustainability and/or cause its economy to over ...
... fiscal stance is not a particularly useful concept since it abstracts from too much relevant information at the country level. In particular, excessive stimulus in one country is likely to generate welfare losses there, since this may compromise fiscal sustainability and/or cause its economy to over ...
Implementation of Commission communication strategy
... EMU and financial integration help efficient resource allocation and allow for longer adjustment periods, but managing credit booms can be a challenge (already well before euro adoption) Do not lose sight of long-term challenges: sustain high potential growth, in a context of ageing, globalisation ( ...
... EMU and financial integration help efficient resource allocation and allow for longer adjustment periods, but managing credit booms can be a challenge (already well before euro adoption) Do not lose sight of long-term challenges: sustain high potential growth, in a context of ageing, globalisation ( ...
Moody`s affirms South Africa`s ratings
... Lowering the cost of doing business, removing regulatory constraints and acting swiftly to remove policy uncertainty; Boosting investment through launching Invest SA; and Implementing reforms to ensure that state-owned companies are financially sound, operate efficiently, are well-managed and ...
... Lowering the cost of doing business, removing regulatory constraints and acting swiftly to remove policy uncertainty; Boosting investment through launching Invest SA; and Implementing reforms to ensure that state-owned companies are financially sound, operate efficiently, are well-managed and ...
Presentation – Assessing affordability and impact on fiscal space
... • Fiscal space is the budgetary capacity of a government to provide resources, without jeopardizing the sustainability of its financial position or the stability of the economy • If budgetary capacity is not sufficient, additional fiscal space may be created by raising income taxes, value added taxe ...
... • Fiscal space is the budgetary capacity of a government to provide resources, without jeopardizing the sustainability of its financial position or the stability of the economy • If budgetary capacity is not sufficient, additional fiscal space may be created by raising income taxes, value added taxe ...
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... criterion stipulating that countries must not have an excessive deficit as defined by the Treaty. Second, Member States agreed on the establishment of the Stability and Growth Pact in order to help implement the obligation to avoid excessive deficits as laid down in the Treaty (Stark 2001). The “pre ...
... criterion stipulating that countries must not have an excessive deficit as defined by the Treaty. Second, Member States agreed on the establishment of the Stability and Growth Pact in order to help implement the obligation to avoid excessive deficits as laid down in the Treaty (Stark 2001). The “pre ...
Presentation - United Nations Statistics Division
... • Growing prominence of statistics in general, and national accounts in particular • Focus on certain indicators provides single and clear message, e.g. government deficit and debt ...
... • Growing prominence of statistics in general, and national accounts in particular • Focus on certain indicators provides single and clear message, e.g. government deficit and debt ...
National Accounts - continuously struggling to catch
... Price-volume split for public services Statistics Denmark was slow in moving away from the input based method The move to ESA2010 raises a communications issue wrt. fiscal policy discussion And a substantive issue of whether change is sufficient? A further change down the line will raise a ...
... Price-volume split for public services Statistics Denmark was slow in moving away from the input based method The move to ESA2010 raises a communications issue wrt. fiscal policy discussion And a substantive issue of whether change is sufficient? A further change down the line will raise a ...
The fiscal treaty needs a protocol - Bibliothek der Friedrich
... despite the precarious circumstances in the crisis states – recession, high unemployment, rising poverty, increasing political radicalisation – the present Fiscal Treaty must be expanded. This must not be merely symbolic, as in 1997 when the Stability Pact of the emerging monetary union was expanded ...
... despite the precarious circumstances in the crisis states – recession, high unemployment, rising poverty, increasing political radicalisation – the present Fiscal Treaty must be expanded. This must not be merely symbolic, as in 1997 when the Stability Pact of the emerging monetary union was expanded ...
Spring 2004 Forecast Presentation UK
... medium-term budgetary objectives; Council opinion - Legal instruments: policy advice; early warning. •‘Corrective arm’: - Legal instrument: excessive deficit procedure 3% of GDP deficit threshold; graduated enforcement mechanism; possibility of sanctions. ...
... medium-term budgetary objectives; Council opinion - Legal instruments: policy advice; early warning. •‘Corrective arm’: - Legal instrument: excessive deficit procedure 3% of GDP deficit threshold; graduated enforcement mechanism; possibility of sanctions. ...
Europe 2020 and the European Economic Governance
... respect national practices and institutions for wage formation. This Regulation takes into account Article 28 of the Charter of Fundamental Rights of the European Union, and accordingly does not affect the right to negotiate, conclude or enforce collective agreements or to take collective action in ...
... respect national practices and institutions for wage formation. This Regulation takes into account Article 28 of the Charter of Fundamental Rights of the European Union, and accordingly does not affect the right to negotiate, conclude or enforce collective agreements or to take collective action in ...
MDBS joint assessment of Ghana`s macro economic management in
... • Oil revenue management law adoption to mitigate risks when implemented. Implemented automatic tariff adjustment mechanisms to reduce oil price – related budget volatility. • Macroeconomic stability will ultimately depends on successful fiscal consolidation. Figures up to end March 2011 are consist ...
... • Oil revenue management law adoption to mitigate risks when implemented. Implemented automatic tariff adjustment mechanisms to reduce oil price – related budget volatility. • Macroeconomic stability will ultimately depends on successful fiscal consolidation. Figures up to end March 2011 are consist ...
Hungary`s Fiscal Policy Council
... As part of the reformed Stability and Growth Pact, member states in the euro area have begun establishing independent fiscal policy institutions in order to monitor and coordinate economic policies conducted at the national level. A fundamental requirement for an institution of this kind is that its ...
... As part of the reformed Stability and Growth Pact, member states in the euro area have begun establishing independent fiscal policy institutions in order to monitor and coordinate economic policies conducted at the national level. A fundamental requirement for an institution of this kind is that its ...
WILL FISCAL POLICY IN THE EURO AREA BE SUFFICIENTLY R
... detailed in the Stability and Growth Pact, which also gives a specification for when the rules can be breached without repercussions. The aim is to achieve fiscal stability, while still maintaining sufficient flexibility to deal with business cycles (IMF, 1997). However, many people now argue that t ...
... detailed in the Stability and Growth Pact, which also gives a specification for when the rules can be breached without repercussions. The aim is to achieve fiscal stability, while still maintaining sufficient flexibility to deal with business cycles (IMF, 1997). However, many people now argue that t ...
Europäische Geldpolitik
... aims, through regular surveillance, at preventing budget deficits going above the 3% reference value. Requires the submission of stability and convergence programmes. imposes a medium-term objective of a government budget close to balance or in surplus measured in cyclically adjusted terms (see Co ...
... aims, through regular surveillance, at preventing budget deficits going above the 3% reference value. Requires the submission of stability and convergence programmes. imposes a medium-term objective of a government budget close to balance or in surplus measured in cyclically adjusted terms (see Co ...
The Global Economy
... assess. For example, it could be hard to sanction countries that breach the limits. The impact on demand in the euro zone of austerity could be quite negative. Now that the pact has been agreed upon, it is important that attention turns to growth and competitiveness – and that extensive structural ...
... assess. For example, it could be hard to sanction countries that breach the limits. The impact on demand in the euro zone of austerity could be quite negative. Now that the pact has been agreed upon, it is important that attention turns to growth and competitiveness – and that extensive structural ...
Economic and Monetary Union and the Euro
... Inflation may not be more than 1.5% higher than that of the average of 3 best performing member states ...
... Inflation may not be more than 1.5% higher than that of the average of 3 best performing member states ...
DOC
... macroeconomic forecast. In conformity with these documents, and especially regarding an updated level of envisaged general government deficits, the government will decide about the possible need to adopt the further steps in a budgetary area. 3 Measures Taken in Line with the European Economic Recov ...
... macroeconomic forecast. In conformity with these documents, and especially regarding an updated level of envisaged general government deficits, the government will decide about the possible need to adopt the further steps in a budgetary area. 3 Measures Taken in Line with the European Economic Recov ...
Causes, Benefits, and Risks of Business Tax Incentives
... -Caps on government guarantees and total liabilities - Prohibit government borrowing from ...
... -Caps on government guarantees and total liabilities - Prohibit government borrowing from ...
Information Note on Fiscal Space 2017
... If the tax system was not indexed, this would open up an additional c.€2.0 billion of fiscal space over the period 2017-2021. Changes at EU level regarding the definition of a balanced budget mean that Ireland could achieve this earlier than envisaged in the Budget (i.e. possibly achieving a bal ...
... If the tax system was not indexed, this would open up an additional c.€2.0 billion of fiscal space over the period 2017-2021. Changes at EU level regarding the definition of a balanced budget mean that Ireland could achieve this earlier than envisaged in the Budget (i.e. possibly achieving a bal ...
... the fiscal deficit more than doubled to 5.1% of GDP in calendar year 2015 from 3.5% of GDP in 2014. The current account deficit is projected to expand to 9.5% of GDP, with an increase in the merchandise deficit outweighing the improvement in the services account, buoyed by higher tourism inflows. Gr ...
0524 EN
... ambiguity of the notion of sufficiently diminishing pace of reduction and the greater impact on the debt ratio of variables outside the control of the government, notably inflation. The EDP is backed in principle by a strong enforcement mechanism, as financial sanctions can, and should be, imposed ...
... ambiguity of the notion of sufficiently diminishing pace of reduction and the greater impact on the debt ratio of variables outside the control of the government, notably inflation. The EDP is backed in principle by a strong enforcement mechanism, as financial sanctions can, and should be, imposed ...
Stability and Growth Pact
![](https://commons.wikimedia.org/wiki/Special:FilePath/Fiscal_Compliance_2014-debt.png?width=300)
The Stability and Growth Pact (SGP) is an agreement, among the 28 Member states of the European Union, to facilitate and maintain the stability of the Economic and Monetary Union (EMU). Based primarily on Articles 121 and 126 of the Treaty on the Functioning of the European Union, it consists of fiscal monitoring of members by the European Commission and the Council of Ministers, and the issuing of a yearly recommendation for policy actions to ensure a full compliance with the SGP also in the medium-term. If a Member State breaches the SGP's outlined maximum limit for government deficit and debt, the surveillance and request for corrective action will intensify through the declaration of an Excessive Deficit Procedure (EDP); and if these corrective actions continue to remain absent after multiple warnings, the Member State can ultimately be issued economic sanctions. The pact was outlined by a resolution and two council regulations in July 1997. The first regulation ""on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies"", known as the ""preventive arm"", entered into force 1 July 1998. The second regulation ""on speeding up and clarifying the implementation of the excessive deficit procedure"", known as the ""dissuasive arm"", entered into force 1 January 1999.The purpose of the pact was to ensure that fiscal discipline would be maintained and enforced in the EMU. All EU member states are automatically members of both the EMU and the SGP, as this is defined by paragraphs in the EU Treaty itself. The fiscal discipline is ensured by the SGP by requiring each Member State, to implement a fiscal policy aiming for the country to stay within the limits on government deficit (3% of GDP) and debt (60% of GDP); and in case of having a debt level above 60% it should each year decline with a satisfactory pace towards a level below. As outlined by the ""preventive arm"" regulation, all EU member states are each year obliged to submit a SGP compliance report for the scrutiny and evaluation of the European Commission and the Council of Ministers, that will present the country's expected fiscal development for the current and subsequent three years. These reports are called ""stability programmes"" for eurozone Member States and ""convergence programmes"" for non-eurozone Member States, but despite having different titles they are identical in regards of the content. After the reform of the SGP in 2005, these programmes have also included the Medium-Term budgetary Objectives (MTO's), being individually calculated for each Member State as the medium-term sustainable average-limit for the country's structural deficit, and the Member State is also obliged to outline the measures it intends to implement to attain its MTO. If the EU Member State does not comply with both the deficit limit and the debt limit, a so-called ""Excessive Deficit Procedure"" (EDP) is initiated along with a deadline to comply, which basically includes and outlines an ""adjustment path towards reaching the MTO"". This procedure is outlined by the ""dissuasive arm"" regulation.The SGP was initially proposed by German finance minister Theo Waigel in the mid-1990s. Germany had long maintained a low-inflation policy, which had been an important part of the German economy's strong performance since the 1950s. The German government hoped to ensure the continuation of that policy through the SGP, which would ensure the prevalence of fiscal responsibility, and limit the ability of governments to exert inflationary pressures on the European economy. As such, it was also described to be a key tool for the Member States adopting the euro, to ensure that they did not only meet the Maastricht convergence criteria at the time of adopting the euro, but kept on to comply with the fiscal criteria for the following years.