EAPN Greece shares an article: Should Stability and Growth Pact be strengthened?

Recently, economists from the Paris-based economic institute OFCE, published an article on the results of their economic analysis of the New Fiscal Treaty, using a kind of Keynesian simulation model for 4 EU countries, with which they analysed the economic implications of the new fiscal rules of this Treaty for the next 20 years. The economic consequences are recessions, long-term deflation and chronic stagnation.