How should the Stability and Growth Pact be reformed? Three points of view on the future of Europe’s fiscal pact

One of a series of articles in this issue of Finance and Development under the theme 'Europe's conundrum', which focus on the economic challenges facing the European Union following the accession of 10 new members on May 1, 2004.

Three outside experts offer very different viewpoints on the future of the Stability and Growth Pact. One says the pact is flawed and that a new one is needed. A second one says the problem with the pact is not in how it is written but in how it is applied. According to an intermediate viewpoint, the pact treats all countries the same without regard to their underlying fiscal institutions. It is fine as it is but, if reformed, should take into account the possible effect on countries' fiscal institutions.