A New Pact in Sight? Reform of the Stability & Growth Pact

In a few weeks, the Germans will go to the polls. The national election marks the end of 16 years with Angela Merkel as German chancellor. Although European politics does not play a crucial role in the election campaign, all political parties have ideas about what should happen to the EU’s Stability and Growth Pact (SGP) after the election.

The rules of the SGP – set to ensure that member states pursue sound public finances and coordinate fiscal policies – were partly temporarily suspended at the beginning of the Covid crisis. The suspension re-sparked the debate over these rules. Specifically, do they make member states pursue sound fiscal policies, or are they a non-sensible straitjacket?

The purpose of the webinar is to address the debate, which will inevitably restart after the 26 September elections. Besides Germany, the debate will also play a role in next spring’s presidential campaign in France. What reform proposals for the SGP could end on the table after this super election year, and which should Denmark pursue?