Stability and Growth Pact Fails to Influence Deficit Policy Changes
The study looked at whether joining the European Monetary Union or breaking the Stability and Growth Pact in 2003 affected how countries managed their deficits. The results showed that neither event changed how deficits were handled. This suggests that the Pact didn't have much influence and didn't prevent the debt crisis. The study suggests that a sanctioning system that isn't influenced by politics is needed.