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“Fiscal Compact”, sovereignty and austerity
In the perspective of its entry into force next fall, Yves Bertoncini analyses the political scope of the “Fiscal Compact” on the basis of three statements: this compact symbolises the Europeans’ economic and financial interdependence; it is a safeguard controlling the abuse of public accounts, not their substance; European disciplines are not necessarily a synonym for austerity
He underlines that it is because they failed to manage their public or private accounts and their competitiveness strategies properly that Spain, Greece, Ireland and Portugal today are having to conjugate restricted sovereignty with enforced austerity. And concludes that in adopting and implementing the “Fiscal Compact”, the Europeans are being urged once again to illustrate the virtues of the old proverb “prevention is better than cure”.
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