‘Close‐to‐Balance or in Surplus’: A Policy‐Maker's Guide to the Implementation of the Stability and Growth Pact

摘要: Under the Stability and Growth Pact, countries are committed to achieve medium-term budget positions of ‘close-to-balance or in surplus’. The rationale for this commitment is that such budgetary would allow full working built-in stabilizers without triggering sanctions procedures Pact. This article sets out show how quantifications (structural) requirement can accommodate desired aim suggests fiscal measurement forecasting errors as well effects ageing may be allowed for. All all, broadly balanced budgets medium term appear ‘roughly right’ most euro-zone countries. Of course, cyclical behaviour economy adapts new EMU environment, targets will need addressed again.