Why A Tougher Stability And Growth Pact Is A Bad Idea
The European Commission has just presented its proposals to strengthen the Stability and Growth Pact. This column argues it is a very bad idea as it is based on a wrong diagnosis of the causes of the debt crisis in the Eurozone and because there cannot be taxation without representation. It suggests reforms should not only focus on the responsibilities of national governments but also on those of the ECB. The European Commission has presented its proposals to strengthen the Stability and Growth Pact (SGP). If accepted by the Council, this will be the third version since the start of the Eurozone.