Chapter 14: The 2003 fiscal crisis
After years of negotiating the SGP and the Excessive Deficit Procedures (EDP), in particular, trouble emerged for the EMU almost immediately. Given the poorly conceived nature of the SGP it was no surprise that it would fail its first test. What was surprising was the way the politicians and bureaucrats behaved in the face of what any reasonable assessment would consider to be extraordinary hypocrisy. But then, the way Theo Waigel wriggled and squirmed in the ‘convergence period’ with his ‘3 doesn’t mean 3.0’ and the related slippage in allowing Belgium, Italy, and then Greece to enter had already demonstrated how ‘flexible’ Germany would be with its ‘discipline’. The history of the EMU to date has taught us that if Germany is unable to meet rules, then the rules will be altered. Otherwise, the rules will be used as a blunt weapon to devastate the employment base and living standards of weaker nations without the political clout of Germany.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.