Europe's Growth and Stability Pact is under threat as never before. Even European Commission President Romano Prodi now calls it "stupid." In many ways, he may not be wrong.
Last summer, as soon as it became clear that Germany's mounting budget deficit might exceed the Stability Pact's ceiling, Chancellor Schröeder postponed a tax cut he had already announced rather than cut public spending. The French government, unwilling to cut its swollen public sector, is now thumbing its nose at the Stability Pact and its enforcers in the European Commission, saying that it has "different priorities" than those required by the pact. The question now is whether or not the Stability Pact can long survive the antagonism of the EU's two biggest economies.
The Stability Pact emerged after a long period (part of the 1970s, all of the 1980s, and a good portion of the 1990s) during which many European countries lost control of their fiscal balances. The Stability Pact initially sought to force countries that wished to join European Monetary Union to bring their budgets closer into balance and to slash excess debt. Now, however, its built-in flaws are being revealed.
To continue reading, register now.
Subscribe now for unlimited access to everything PS has to offer.
Americans have long seen their country as morally exceptional, but their exceptionalism actually comprises three distinct views. Whichever prevails in next year’s presidential election will have significant implications for ongoing conflicts in Europe, Asia, and the Middle East.
identifies three strands of the concept and their implications for US foreign policy after next year’s election.
With a likely rematch between Joe Biden and Donald Trump in the 2024 US presidential election, America and the rest of the world were heading into a perilous period even before the latest conflagration in the Middle East. Turmoil in the region will cloud the broader economic outlook – and could dim Biden’s chances.
worries global economic and political developments will put Donald Trump back in the White House.
Around the world, foreign-policy strategists are grappling with new international dynamics, from the Sino-American rivalry and ongoing hot wars to the broader breakdown in multilateral global governance. However, there is much debate about whether global power and alignments are truly shifting, and in what ways.
consider whether the world will become more multipolar or “non-aligned” in the new year.
Europe's Growth and Stability Pact is under threat as never before. Even European Commission President Romano Prodi now calls it "stupid." In many ways, he may not be wrong.
Last summer, as soon as it became clear that Germany's mounting budget deficit might exceed the Stability Pact's ceiling, Chancellor Schröeder postponed a tax cut he had already announced rather than cut public spending. The French government, unwilling to cut its swollen public sector, is now thumbing its nose at the Stability Pact and its enforcers in the European Commission, saying that it has "different priorities" than those required by the pact. The question now is whether or not the Stability Pact can long survive the antagonism of the EU's two biggest economies.
The Stability Pact emerged after a long period (part of the 1970s, all of the 1980s, and a good portion of the 1990s) during which many European countries lost control of their fiscal balances. The Stability Pact initially sought to force countries that wished to join European Monetary Union to bring their budgets closer into balance and to slash excess debt. Now, however, its built-in flaws are being revealed.
To continue reading, register now.
Subscribe now for unlimited access to everything PS has to offer.
Subscribe
As a registered user, you can enjoy more PS content every month – for free.
Register
Already have an account? Log in