Bulletin n. 1-2/2014 | ||
November 2014 | ||
Ioannou Demosthenes, Stracca Livio |
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Have the euro area and EU governance worked? Just the facts | ||
in European Journal of Political Economy , Volume 34, June 2014 , 2014 , 1-17 | ||
We test whether the two key EU and euro area economic governance pillars, the Stability and Growth Pact and the Lisbon Strategy, have had any impact on macroeconomic outcomes. We test this proposition on a panel of 27, some of which are non-EU (control group) using a programme evaluation approach. The impact of the EU economic governance pillars is evaluated based on both the performance before and after their application as well as against the control group. We find strong and robust evidence that neither the Stability and Growth Pact nor the Lisbon Strategy have had a significant beneficial impact on fiscal and economic performance outcomes. We conclude that a profound reform of these pillars is needed to make them work in | ||