The EU’s Economic Policy Architecture after the Ratification of the Fiscal Treaty

Under strong influence of the emerging public debt, the “Treaty on Stability, Coordination and Governance in the Economic and Monetary Union” was presented in order to incorporate aspects of a reinforced “Stability and Growth Pact”. The Treaty entered into force in January 2013.  
In the new E-Brief entitled: "The EU’s Economic Policy Architecture after the Ratification of the Fiscal Treaty", Jorgen Mortensen argues that the newly introduced Treaty does not seem to resolve the problem of finding the appropriate budgetary-monetary policy mix in the EMU in its entirety and that it may complicate some aspects of the economic policy governance in the Eurozone. The introduction of the “Treaty on Stability, Coordination and Governance in the Economic and Monetary Union” does not significantly modify the assessments concerning the implications of the Maastricht Treaty and the Stability and Growth Pact. It does however provide a slightly modified excessive deficit procedure and, in sharp contrast to the Maastricht Treaty and the SGP, it stipulates a direct involvement of the European Court of Justice. In this way, it attempts to fill the judicial vacuum recognized in the Court’s cancellation of the Council decision to suspend the excessive deficit procedure with regards to the French and German deficits in 2003 and 2004.
 

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