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• W72333698 abstract "According to many economists, including those of the European Commission, the serious crisis which befell the Stability and Growth Pact has its roots in the incorrect behaviour of Member States which dissipate resources during economic upswings, thus foregoing an improvement in the budgetary balance to cushion the effects of an eventual downturn. This paper discusses an alternative view which attributes the crisis to the persistently low growth in the European Union. This leads to a proposal for reform of the Pact based on the idea that if the GDP growth of a Member State is very low, the high-quality growth-inducing government expenditure on infra- structure, research and technological innovation would not be con- sidered for the purposes of computing its fiscal deficit. The objectives of this proposal are to make the escape clause of the Pact useable in practice and to avoid forcing member states to give up high quality- spending, which is important for growth and for long-term fiscal sustainability, merely to meet the constraints of the Pact." @default.
• W72333698 created "2016-06-24" @default.
• W72333698 creator A5016632932 @default.
• W72333698 date "2004-01-01" @default.
• W72333698 modified "2023-09-24" @default.
• W72333698 title "THE STABILITY AND GROWTH PACT IN RAINY DAYS: AN ALTERNATIVE VIEW*" @default.
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• W72333698 hasPublicationYear "2004" @default.
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