DESIGN AND IMPLEMENTATION OF THE STABILITY AND GROWTH PACT. WHAT LESSONS FOR THE NEW MEMBER STATES?

One of the most controversial and debated rules adopted by the European Union members, the Stability and Growth Pact was adopted in 1996 and underwent a first reform in 2005. Far from being an ideal fiscal rule, the Pact had its strengths and weaknesses. What has the Council from Spring 2005 brought new in the SGP? The papers assesses the effect of the reform two years after its adoption and, in comparison with the convergence rules of the Maastricht criteria, we draw some conclusions with respect to the new Member States, including Romania.