Stability and Growth Pact Guide, Meaning , Facts, Information and Description
The Stability and Growth Pact is an a agreement by European Union member states related to their conduct of fiscal policy following Economic and Monetary Union.It is enshrined in Articles 99 and 104 of the European Community treaty and related decisions. It consists of multilateral surveillance of fiscal positions and an excessive deficit procedure.
It has been widely criticised both in theory on the grounds that it promotes neither stability nor growth, and in practice on the grounds that has been applied inconsistently, after the Council of Ministers failed to apply sanctions against France and Germany. The President of the European Commission Romano Prodi described it as "stupid", but still sought to apply its provisions. During the negotiations of the draft European Constitution, no serious attempts were made to change it.