It is a commonplace that the mechanisms established in the stability and growth pact are blunt instruments. They are highly politicised as both the establishment of infringements and possible sanctions are subject to votes in the EU Council. The financial crisis of 2009/10 has dramatically altered the financial situation of many EU member states and has also shown the need for new regulatory instruments to enforce budgetary discipline in the Euro zone. Figures on the EU member states’ budget debts from 1999 to 2010 support this argument empirically. We discuss the current reform proposals and show that the introduction of a reversed qualified majority is likely to strengthen substantially the position of the European Commission to sanction non-complying member states. This becomes possible because decisive players in the EU Council will be closer to the position of the Commission.
Stability and Growth Pact; EU; Financial Crisis
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.Material published in the JCER is done so under a CC BY-NC-ND 4.0 licence, with copyright remaining with the author.
- Articles published online in the JCER cannot be published in another journal without explicit approval of the JCER editor.
- Authors can 'self-archive' their articles in digital form on their personal homepages, funder repositories or their institutions' archives provided that they link back to the original source on the JCER website. Authors can archive pre-print, post-print or the publisher's version of their work.
- Authors agree that submitted articles to the JCER will be submitted to various abstracting, indexing and archiving services as selected by the JCER.