Editor's Introduction

Abstract

The Stability and Growth Pact of the European Monetary Union (EMU) has received much attention from macro economists in recent years. Originally proposed by Germany's then finance Minister Theo Waigel in an attempt order to dilute the German public's fears of a weak euro, the Pact was received with sympathy by European policy makers. It was incorporated into the legislation governing EMU at the Amsterdam Summit of 1997. the Stability and Growth Pact adds more strength and precision to the provisions of the Excessive Deficit Procedure of the Maastricht Treaty and accelerates the relevant decision making procedures.