The EU's Stability and Growth Pact: Its Credibility and Sustainability

The Stability and Growth Pact (SGP) of the European Union has come under fire for failing to rein in budget deficits and for the ineffectiveness of its sanctions. By examining trends in public debt and budgetary positions, this article examines whether the SGP has met its objectives and considers the extent to which implementation was affected by the accession of 10 new member states in 2004.