Abstract
The purpose of this note is to compare the characteristics of the actual Stability and Growth Pact with that of a European modified golden rule. The latter would consist in achieving in each EU country a cyclically-adjusted net-of-public-investment balance. The benchmark for comparison is the classification adopted by Kopits and Symansky (1998) on ideal fiscal rules. This classification has been used by Buti et al. (2003) in order to demonstrate the ideal character of the actual Stability and Growth Pact and thus legitimate only slight modifications to the Pact. I intend to show rather, that the modified golden is a better fiscal rule than the actual Pact.
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