Flexibility clauses in the Stability and Growth Pact: No need for revision. CEPS Policy Brief No. 319, 24 July 2014

This Policy Brief offers an in-depth review of the Stability and Growth Pact (SGP) and looks at whether the margins of flexibility within existing rules are sufficient in the current climate of low growth, or whether there is a need to broaden them. The issue is especially relevant as the changing economic environment is raising fresh questions about whether the EU’s current common economic policies are able to manage dismal growth and low inflation. The fragile state of confidence in financial markets and the unresolved but inevitable questions of moral hazard linked to lax fiscal policies mean that no large-scale fiscal expansion to support the recovery of economic activity is feasible. The discussion may therefore only concern the scope within the SGP to accommodate an unexpected drop in economic activity and to provide room for the implementation of structural reforms. Here, we analyse the flexibility clauses of the Stability and Growth Pact under three headings; namely “exceptional circumstances”, “structural reforms and other relevant factors”, and the “investment clause”. Recommendation: Our main conclusion is that the SGP contains sufficient flexibility to accommodate an unexpected drop in economic activity and has the margins needed to finance structural reforms during the transition to the new regime. We therefore see no need to change the existing rules of the SGP. We believe that the ongoing debate about a fresh growth strategy for the eurozone and the European Union would greatly benefit from removing from the Council table ill-formulated and unnecessary demands for greater flexibility in the SGP.

Labor clauses in regional trade agreements and effects on labor conditions : an empirical analysis

An increasing number of bilateral or plurilateral trade agreements (or regional trade agreements: RTAs) include "labor clauses" that require or urge the signatory countries to commit to maintaining a certain level of labor standards. This paper performs an empirical analysis of the impacts of such labor clauses provided in RTAs on working conditions that laborers in the RTA signatory countries actually face, using macro-level data for a wide variety of countries. The paper first examines the texts of labor provisions in more than 220 effective RTAs and (re-)classifies "RTAs with labor clauses" according to two criteria: (i) the agreement urges or expects the signatory countries to harmonize their domestic labor standards with internationally recognized standards, and (ii) the agreement stipulates the procedures for consultations and/or dispute settlement on labor-condition issues between the signatory countries. Based on this labor-clause RTA classification, the paper estimates the impacts of RTA labor clauses on working conditions in countries with two empirical specifications using the sample covering 136 countries or economies and years from 1995 through 2011. The estimation is extended to takes into account possible lags in the labor-condition effects of labor clauses as well as to consider potential difference in the impacts for countries in different income levels. The empirical results for the four measures of labor conditions (mean monthly real earnings, mean weekly work hours per employee, fatal occupational injury rate, and the number of the ILO's Core Conventions ratified) find no evidence for possible pro-labor-condition effects of RTA labor clauses overall, which should be consistent with the view of economics literature that questions the relevance of linking trade policy with issues in the domestic labor standards.

Report to the F.T.C. on the use of automatic fuel adjustment clauses and the fuel procurement practices of investor-owned electric utilities.

Primary authors: Michele F. Crown, L. Jorn Dakin, and Douglas W. Webbink.

Bigg's General railway acts. A collection of the public general acts, for the regulation of railways: including the companies, lands and railways clauses consolidation acts, complete. 1830-98.

Mode of access: Internet.

Cost-of-living escalator clauses and inflation : prepared for the Council on Wage and Price Stability /

Mode of access: Internet.

Automatic fuel adjustment clauses : a staff report.

Mode of access: Internet.

A collection of Acts and clauses of Acts relating to the inland fisheries of Ireland.

Mode of access: Internet.

The laws of the Commonwealth of Massachusetts, from November 28, 1780 to February 28, 1807. With the Constitutions of the United States of America and of the Commonwealth, prefixed. To which is added, an appendix containing acts and clauses of acts, from the laws of the late Colony, Province and State of Massachusetts, which either are unrevised or respect the title of real estate.

Vol. 3 printed by Manning & Loring for Thomas & Andrews.

The Apostles' Creed : An analysis of its clauses, with reference to their credibility /

Mode of access: Internet.

Classified clauses, current labor agreements : brass mill industry /

Loose-leaf for updating.

Working condition clauses covering hourly workers in 300 plants.

At head of title: Special investigation.

Selected clauses from current labor contracts in the automotive parts and automobile industries /

Cover title.