<%@ Language=VBScript %> <% Response.Write(cszCSS) %> Detailed Report
[Econoday]
Today's
Calendar
 |  Simply
Economics
 |  International
Perspective
 |  Short
Take
 |  Market
Recap
 |  Resource
Center
Back to Resource Center
[Back To Archive]

INternational Perspectives
Intro
World Stock Market Indexes
Recap of Global Markets
Currencies
Indicator Scoreboard
The Bottom Line
Looking Ahead


The Bottom Line

By Anne D. Picker, International Economist, Econoday     Monday, October 21, 2002

The Stability and Growth Pact will remain on center stage after Germany - the Pact's architect - conceded that it will breach the 3 percent GDP deficit threshold this year. This was no surprise given the anemic performance of the German economy. The commitment to fiscal tightening next year to rectify the situation comes at a time when weak conditions argue against austerity. The French have openly refused to tighten fiscal policy next year. As a result, the discussion on the rules and enforceability of the Pact has surfaced once again. The European Commission has been firm in its commitment to the Pact despite the mounting trouble. The European Central Bank, when setting monetary policy, looks to fiscal developments in the region as a whole. The situations in France and Germany - and Italy is not far behind - make for an awkward time at the ECB.

Continue



Last Week's Highlights   •   Global Stock Market Indexes   •   Recap of Global Markets   •   Currencies   •  Indicator Scoreboard

The Bottom Line   •   Looking Ahead
Legal Notices | © 2001-2002 Econoday, Inc. All Rights Reserved.