There have been widespread criticisms of EMU fiscal institutions. We consider a simple alternative to the deficit ceilings envisaged in the Stability and Growth Pact. We advocate the adoption of deficit targets. National governments should retain discretion in setting deviations from targets,...

A large literature is focused on governments' fiscal policy making under the disciplining force of fiscal rules. That literature is devoted to map governments' incentives for (non)compliance, but widely ignores the role of fiscal rule enforcement. This is remarkable, given the situation in the...

Bertholt Leeftink investigates whether a potential trade-off exists between budgetary sustainability and budgetary stabilisation and whether monetary union requires closer budgetary co-ordination than currently envisaged. Leeftink argues that the Stability Pact far from limiting member...