SEA: Practical Application of Science (Jun 2013)
FROM THE RULES OF STABILITY AND GROWTH PACT AT SIX – PACK: FINANCIAL CERTAINTY
Abstract
The world economic and financial crisis has shown that, within the European Union as well as the rest of the world, the situation of public finance is not stable even in the presence of a certain level of fiscal and budgetary coordination. Under these circumstances, even if the Lisbon Strategy would have been adopted at European level and an attempt to reach the established targets would have been put into practice after 2007, the year the crisis began, the necessity for starting new European projects which would lead to a better financial coordination and governing of the 27 EU states was acknowledged. If the Lisbon strategy planned for the EU to become the most competitive and dynamic knowledge-based economy by 2010, the slowdown of the economic growth, the increase in unemployment and public finance and banking issues have determined, after 2008, measures that would result in the economic recovery of European states. Starting from the actual situation, the present work wishes to highlight the position of public finance in EU countries, in the context of budgetary problems which interfered with the settlement of the stability and growth accord after 2007. In this context, this work will emphasize the causes that led to the improvement and revision of certain key-elements of the PSC, and also the consequences of their implementation.
