Überprüfung des Stabilitäts- und Wachstumsgesetzes
An Assessment of the Economic Stability and Growth Law
In June 2015 the German government and the German Council of Economic Experts jointly reviewed the goals and instruments of the Economic Stability and Growth Law (ESGL), with the intention to scrutinise the law for a potential reform. Specifically, they considered recent proposals to extend the law along various dimensions of sustainability. The unequivocal result of this review was that the ESGL should be retained without modification. The law is still useful to quickly implement fiscal measures that could mitigate the consequences of severe economic downturns. However, it would be a completely inappropriate basis for attempts to address aspects of sustainability in economic policy making.
Michaelis, H., S. Elstner and C. Schmidt (2015), Überprüfung des Stabilitäts- und Wachstumsgesetzes: An Assessment of the Economic Stability and Growth Law. Wirtschaftsdienst, 95, 12, 830-836