Proper fiscal policy to rekindle investment

Michel AGLIETTA Emeritus Professor of Economic Science at the University of Paris X-Nanterre Scientific advisor at CEPII [vc_btn title= »Download the article » style= »outline » color= »blue » align= »right » i_icon_fontawesome= »fa fa-file-pdf-o » add_icon= »true » link= »url:http%3A%2F%2Fprod.confrontations.org%2Fwp-content%2Fuploads%2F2016%2F03%2FRevue-107-Proper-fiscal-policy-to-rekindle-investment-p10.pdf||target:%20_blank »] Html code here! Replace this with any non empty text and that's it. Significant progress was made in 2012 with the treaty on stability, coordination and governance (TSCG)(1). The coordina tion process consists of assessment procedures carried out by independent bodies, namely the High Councils of Public Finances set up in each member country of the Eurozone. National governments are still responsible for budget development but the discussions between them and the EU institutions during the European Semesters aim at alleviating discrepancies in actual fiscal policies relative to commitments enshrined in the 2012-17 medium-term stability programs . Unfortunately, the rules adopted under Germany’s leadership are a hindrance. The main problem lies in the definition of the golden rule: the structural fiscal balance