High-level roundtable on the optimal design of fiscal consolidation programmes
Conference hosted by the ECB
8 April 2013, Frankfurt am Main
|SESSION 1: THE OPTIMAL PACE OF FISCAL CONSOLIDATION
Benoît Cœuré (ECB)
The risk to fiscal sustainability entailed in the sovereign debt crisis has made fiscal consolidation inevitable in most euro area countries. At the same time, some countries have seen economic activity plummet and unemployment rise to alarming levels. Moreover, there is an urgent need for deleveraging in other sectors of the economies.
|Fiscal consolidation: (more) now or (more) later?
Olivier Blanchard (International Monetary Fund) presentation
|Fiscal backing: a long view
Eric Leeper (Indiana University) presentation
|Roundtable discussion I
Hosted by Vítor Constâncio (ECB)
|SESSION 2: THE QUALITY OF FISCAL CONSOLIDATION
Peter Praet (ECB)
Fiscal consolidation can be achieved by various means. The design of the adjustment should be effective in terms of achieving the consolidation objective, while minimising welfare losses and respecting fairness considerations.
|Fiscal adjustments: what do we know? (part 1)
Alberto Alesina (Harvard University) presentation
The output effect of fiscal adjustments (part 2)
Carlo Favero (Bocconi University) presentation
|How much scope for growth- and equity-friendly consolidation?
Pier Carlo Padoan (Organisation for Economic Co-operation and Development) presentation
|Roundtable discussion II
|SESSION 3: FISCAL GOVERNANCE FRAMEWORK
Mario Draghi (ECB)
Fiscal consolidation in Europe generally needs to be assessed in the context of the EU fiscal governance framework. Many countries are still subject to an excessive deficit procedure and are required to bring their deficits below 3% within certain deadlines. The design of the fiscal consolidation measures is also affected by additional elements of the Stability and Growth Pact, such as the expenditure rule and the equal footing of the debt criterion with the deficit criterion.
|Fiscal governance framework: the importance of credibility
Frank Smets (ECB) presentation
|Implementing the European fiscal governance framework
Marco Buti (European Commission), presentation
|Roundtable discussion III