European Public Finances through the Crisis
Public finances in euro area countries did not trigger the 2008 crisis, but they inevitably came under the microscope as difficulties in reducing a large deficit and low growth and inflation environment challenged the soundness and sustainability of some European states’ balance sheets. European governance was at first not able to tackle this issue effectively, but after several rounds of reforms the European Commission (EC) now has extra powers to monitor and enforce common rules under the Stability and Growth Pact.
KeywordsFiscal Policy Euro Area Public Investment Debt Ratio Fiscal Consolidation
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