An overview of the Stability and Growth Pact - September 2019

10-09-2019

The Stability and Growth Pact (SGP) is the legal framework (based on primary and secondary EU law) that seeks to ensure sustainable public finances in the interest of the stability of the Economic and Monetary Union (EMU). It consists of two main building blocks: the preventive arm and the corrective arm. Stylised overviews, including on flexibility provisions (endorsed by the Council) within the existing rules of the SGP, are provided in the annexes. The main sources used in this briefing are primary Union law (Articles 121 and 126 of the Treaty on the Functioning of the European Union), secondary Union law (the amended Regulations (EC) 1466/97 and 1467/97 as well as the Regulation (EU) No 1173/2011), the Code of Conduction on the implementation of the SGP and the Commission Communication entitled ‘Making the best use of flexibility within the existing rules of the SGP’.

The Stability and Growth Pact (SGP) is the legal framework (based on primary and secondary EU law) that seeks to ensure sustainable public finances in the interest of the stability of the Economic and Monetary Union (EMU). It consists of two main building blocks: the preventive arm and the corrective arm. Stylised overviews, including on flexibility provisions (endorsed by the Council) within the existing rules of the SGP, are provided in the annexes. The main sources used in this briefing are primary Union law (Articles 121 and 126 of the Treaty on the Functioning of the European Union), secondary Union law (the amended Regulations (EC) 1466/97 and 1467/97 as well as the Regulation (EU) No 1173/2011), the Code of Conduction on the implementation of the SGP and the Commission Communication entitled ‘Making the best use of flexibility within the existing rules of the SGP’.