The main goal of the first-generation expenditure rules was to ensure fiscal discipline: preserving a sound fiscal framework and public debt sustainability. Regarding this goal, analytically as well as empirically, limiting the share of public expenditure in GDP would be more appropriate in case...

In 2020, in the context of the COVID-19 health crisis, the rules of the Stability and Growth Pact were temporarily suspended in the European Union. Nevertheless, the European Council and the European Parliament reached an agreement for the reactivation of these rules in 2024. A simple analytical...

We aim to analyze the potential positive or negative effects of public expenditure on economic growth, as well as their determinants. To this goal, we use a simple theoretical model, which has the specificity to distinguish between public investment and consumption expenditure, and which could...