Journal of Economics and Research

Yazarlar: Mehtap KARAYAZI

Konular:-

Anahtar Kelimeler:European Union,Stability and Growth Pact,Fiscal Policy

Özet: In this study, the development of the Stability and GrowthPact, which was established to ensure the financial coordination of the European Union, was examined. While the European Union has adopted commonand central practices in its monetary policy, it has not made a commonpractice in fiscal policy. The Stability and Growth Pact (SGP) is a set of rules designed to ensure the coordination of the fiscal policies of the member states in the European Union in order to eliminate the incompatibilities arising from the different approach between monetary and fiscal policy. Explaining the provisions of the monitoring of the fiscal policies of the member countries and the monitoring of budget deficits, the SGP has been subjected to various reforms since 1997 to increase compliance to the rules and help reduce economic problems. When the details of the reforms are examined, it is seen that the problems caused by the economic differences of the member countries and economic breakdown accelerate the reforms. At the same time, it is possible to say that with the reforms, fiscal rules have been stretched with an approach that takes more into account the purpose of economic growth and employment.

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