Structural Reforms and Fiscal Discipline in Europe

In this paper we provide an overview on recent contributions on the effectiveness of the institutional framework operating in Europe to fulfil the objectives declared in the Lisbon Agenda under the fiscal constraints established in the Stability and Growth Pact. After a review of the Stability and Growth Pact as well as the Lisbon Strategy and the Sapir Report, we discuss the relations between fiscal policy and structural reform. Finally, we focus on 2D points in the EU debate on institutional reforms: government short-sightedness and the coordination of national fiscal policies at the European level.