Thursday, 10 June 2010

EMU: Implementing the Stability and Growth Pact (SGP)

The Specifications on the implementation of the Stability and Growth Pact and Guidelines on the format and content of Stability and Convergence Programmes, the so called Code of Conduct (21 pages), were endorsed by the Ecofin Council 10 November 2009, before the Lisbon Treaty entered into force. The references to the old treaty provisions (TEC) will surely be substituted by references to the TFEU in the following update of the Code of Conduct.

The first section elaborates on the implementation of the Stability and Growth Pact, and the interested find the following contents:



SECTION I – SPECIFICATIONS ON THE IMPLEMENTATION OF THE STABILITY AND GROWTH PACT



A. THE PREVENTIVE ARM OF THE STABILITY AND GROWTH PACT

1) The Medium term budgetary objective (MTO)

2) The adjustment path toward the medium-term budgetary objective and deviations
from it

3) Commission policy advice and warning



B. THE EXCESSIVE DEFICIT PROCEDURE

1) Commission report under Article 104(3)

2) The decision on the existence of an excessive deficit

3) The correction of an excessive deficit

4) Abrogation of Council decisions in the context of the EDP for Member States having implemented multi-pillar pension reforms




Ralf Grahn