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.

The 2005 Reform of the Stability and Growth Pact: Too Little, Too Late? Bruges European Economic Research (BEER) Papers 6/November 2006

This paper analyses the main critiques addressed by the literature and the policymakers to the 1997 Stability and Growth Pact. It further indicates to what extent the 2005 reform of the Pact meets those critics. It finally argues that the 2005 reform may be too little and arrive too late to restore the Pact credibility, ensure its enforceability and correctly set the derogations to the excessive deficit procedure on the nature of the shocks which cause the output gap rather than its size: a 3% of GDP limit on deficit spending may be a too binding constraint in front of a strongly negative demand shock, while it is irrationally large in front of a supply shock. Some empirical evidence is provided to identify in the last years strongly negative demand shocks from other shocks in the 25 EU Member States. Had this identifying method been adopted in November 2003, the European Commission and the Council would have both agreed to stop the excessive deficit procedure against Germany, but they would have both proceeded against France which apparently was not at the time hit by a strongly negative demand shock.

Modelling and control of refrigeration systems: an account of a pedagogic experiment in a post-secondary technical course

Comunicação apresentada no CYTEF 2016/VIII Congresso Ibérico | VI Congresso Ibero-Americano de Ciências e Técnicas do Frio, 3-6 maio 2016, Coimbra, Portugal

Quo vadis Aethina tumida? Biology and control of small hive beetles

Small hive beetles (SHBs) are generalists native to sub-Saharan Africa and reproduce in association with honeybees, bumblebees, stingless bees, fruits and meat. The SHB has recently become an invasive species, and introductions have been recorded from America, Australia, Europe and Asia since 1996. hile SHBs are usually considered a minor pest in Africa, they can cause significant damage to social bee colonies in their new ranges. Potential reasons for differential impact include differences in bee behaviour, climate and release from natural enemies. Here, we provide an overview on biology, distribution, pest status, diagnosis, control and prevention to foster adequate mitigation and stimulate future research. SHBs have become a global threat to both apiculture and wild bee populations, but our knowledge of this pest is still limited, reating demand for more research in all areas of its biology.