Eurozone officials call for major fiscal changes
Stability and Growth Pact is hampering policy, speakers at ECB conference argue
Eurozone governments should loosen fiscal policy by changing the way they calculate deficits, officials and academics argued at a European Central Bank conference.
Klaus Regling, managing director of the European Stability Mechanism, was one of several speakers calling for reform of the Stability and Growth Pact. The SGP, adopted in 1992, obliges eurozone governments to maintain budget deficits below 3% of GDP, and public debt below 60% of GDP.
However, due to the financial and sovereign debt
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