European Commission adopts proposals to strengthen economic governance and clarify the implementation of the Stability and Growth Pact, September 2004

Following mounting criticism of the rules concerning economic governance in the European Union, and a legal challenge by the European Commission earlier in 2004 against the Member States (ECJ Case C-27/04), the European Commission introduced proposals in September 2004 to strengthen economic governance and clarify the implementation of the Stability and Growth Pact (SGP). The Communication responded to the European Council, June 2004 call for proposals by the Commission that strengthen and clarify the implementation of the SGP. The European Commission advocates better interlinking the instruments for EU economic governance in order to enhance the contribution of budgetary policy to economic growth. The Commission also proposes that the SGP would benefit from an increased focus on the sustainability of public finances and increased recognition of the different economic situations in an enlarged Union of 25.

EU: Legislation and Policy Making

	European Central Bank: Press Release, 13.7.04: Statement by the European Central Bank on ECJ judgment in Case C-27/04
	European Commission: Communication: Strengthening economic governance and clarifying the implementation of the Stability and Growth Pact (COM (2004)581 fianl)
	European Commission: DG Economic and Financial Affairs: Stability and Convergence programmes
	Council of the European Union: Press Release: PRES/03/320: Ecofin Council, 25.11.04: Implementation of the Stability and Growth Pact, France and Germany
	European Central Bank: Speeches: Testimony before the Committee on Economic and Monetary Affairs of the European Parliament: Introductory statement by Mr Jean-Claude Trichet, President of the European Central Bank, Brussels, 22 September 2004
	The Netherlands: EU Presidency, July-December 2004: Reaction to ECJ judgement in Case C-27/04, July 2004
	European Union: Legislation in force: Economic and Monetary Union
	Council Decision 2003/487/EC of 3 June 2003 on the existence of an excessive deficit in France ( application of Article 104(6) of the Treaty establishing the European Community)
	European Commision: Secretariat General: PreLex: Follow the progress of COM (2004)581 final
	European Court of Justice: Case C-27/04: Commission v Council: Press Release, No.57, 2004
	European Court of Justice: Case C-27/04: Commission v Council: Judgement

EU: Background

	European Commission: DG Economic and Financial Affairs: About: Activities: Fiscal surveillance: Stability and Growth Pact and Fiscal Surveillance
	European Commission: Speech: SPEECH/04/387
	European Commission: Speech: SPEECH/04/388
	European Commission: Press Release: IP/04/1062
	European Commission: DG Economic and Financial Affairs: About: Activities

International Organisation

	International Monetary Fund: Country Report, No.235, 2004: Euro Area Policies: Selected Issues
	International Monetary Fund: Finance and Development, Vol.41, No.2, June 2004: Europe's quest for fiscal discipline. Will the Stability and Growth Pact help Europe find the right balance between fiscal discipline and flexibility?
	International Monetary Fund: Finance and Development, Vol.41, No.2, June 2004: How should the Stability and Growth Pact be reformed? Three points of view on the future of Europe's fiscal pact

National/regional/local official organisation

	Germany: The Press and Information Office of the Federal Government: Press Release: Schr�der: Stability pact needs to be interpreted in growth-oriented sense, 13.5.04
	Deutsche Bundesbank: Press Release: Do not weaken the Stability and Growth Pact, September 2004
	Uniteed Kingdom: HM Treasury: The Stability and Growth Pact: A discussion paper, 2004
	Ireland: Department of Finance: Joint Oireachtas Committee on European Affairs, 11th December 2003: The Stability and Growth Pact and recent Ecofin Developments
	United Kingdom, House of Lords: Select Committee on the European Union: Evidence from the Financial Secretary on the Stability amd Growth Pact and the European Central Bank: 14th Report, (2003-04) HL 88
	United Kingdom, House of Lords: Select Committee on the European Union: 13th Report, (2002-03)HL 72: The Stability and Growth Pact

Stakeholder organisation

	European Policy Centre: Economic governance
	Euro 50 Group: The governance of the Euro Zone (Roundtable, Brussels, 3-4 May 2004)
	Centre for European Reform: Policy Brief: A pact for stability and growth, 2003
	European Institute of Public Administration: EIPASCOPE, No.2, 2004: Does the EU need the Stability and Growth Pact?
	Ifo Institute for Economic Research: European Economic Advisory Group at CESifo: Report on the European Economy 2004: Chapter 1 Appendix 4
	Centre for European Policy Studies: Commentaries: The Excessive Deficit Procedure and the Results of the Ecofin Council of 25 November - Some Preliminary Legal Comments, 2004
	Centre for European Policy Studies: Commentaries: Carrots, Sticks and Good Arguments: Principles for the Reform of Economic Policy Coordination, 2004
	Centre for European Policy Studies: Commentaries: The Stability Pact is dead! Long live the Treaty?

Commercial publisher and media

	Financial Times: Greece vows to halve deficit amid threats from Commission, 30.9.04
	Financial Times: Europe needs a strategy, not looser fiscal rules, 24.5.04
	Financial Times: German deficit set to breach EU stability pact again, 30.9.04
	Financial Times: EU deficit sanctions decision 'illegal', 14.7.04
	BBC News: Court overturns finance ministers, 13.7.04
	European Voice: Court case 'will not help' Stability and Growth Pact, 8.7.04
	BBC News: Euro pact rules to be reviewed, 26.6.04
	Financial Times: A great chance for Europe to get its act together, 19.7.04
	European Voice: Divided Europe flunking economic rulebook tests, 10.6.04
	Financial Times: EU battle to impose fiscal rules nears end, 1.9.04
	Financial Times: Finance ministers call for EU stability pact rethink, 21.5.04
	The Economist: One for all. The perils of a single currency, 25.9.04
	The Economist: Europe's single currency. The instability and fudge pact, 11.9.04
	The Economist: Europe and the euro: The death of the stability pact, 29.11.03
	The Economist: Europe's fiscal follies. Unstable and incredible, 29.11.03
	The Economiust: Charlemagne: Stability or instability, 8.11.03
	Financial Times: Brussels prefers peer pressure to fines, 22.6.04
	Financial Times: German bank hits at fiscal pact plan, 8.9.04
	Financial Times: Greece given legal warning for gross under-reporting of deficit, 24.9.04
	Financial Times: ECB warns against weakening fiscal rules, 23.9.04
	Financial Times: France vows to cut deficit in line with EU criteria, 23.9.04
	BBC News: French budget to control deficit, 22.9.04
	Financial Times: Ministers agree on stability pact reform - but not on the extent, 11.9.04
	Financial Times: Solomonic ruling, 14.7.04
	Financial Times: EU monetary chief urges euro reforms, 29.9.04
	The Economist: Europe's stability pact: Stabbed, 11.10.04
	European Voice: Revised pact will raise euro entry bar, 9.9.04
	Financial Times: The flaw that threatens the eurozone, 6.9.04
	Financial Times: EU critics claim 'cop-out' as Prodi eases growth pact, 4.9.04
	Financial Times: Back to life, 3.9.04
	Financial Times: Barroso must take a hard line on the pact, 3.9.04
	BBC News: Move to relax euro budget rules, 3.9.04
	European Voice: Finance ministers to examine fiscal rules 'softening', 2.9.04
	European Voice: One new Pact for all, and all for one?, 30.9.04

Related Topic Guides / In Focus

	ESO: Information Guides: Topic Guide: Economic and Monetary Union
	ESO: Information Guides: In Focus: Stability and Growth Pact: Ecofin Council decides not to act on the basis of European Commission recommendations regarding France and Germany, November 2003

Related Publications

Books

Stability and growth in Europe: Towards a better pact (Centre for Economic Policy Research, 2003, ISBN: 1-898128-77-4)

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