The Stability and Growth Pact at 30: Trading Off Citizen for Technocratic Accountability

The Stability and Growth Pact (SGP) has long been a cornerstone of Economic and Monetary Union (EMU) in Europe and dominated debates during its early decades. However, successive crises—the euro area crisis, the COVID-19 pandemic, and the war in Ukraine—each exerted distinct pressures on the system, pushing the SGP into the background. In response, new mechanisms of economic governance emerged to contain Member States’ budget deficits and public debt while fostering policy coordination. The SGP’s third major revision, adopted in April 2024 and effective from 2025, marks a significant departure from its original design. Initially conceived as a clear and transparent framework for citizens, the pact was often criticized for excessive rigidity. By contrast, the revised SGP is highly tailored to the needs of governments. This shift, however, comes at a cost: it diminishes the pact’s relevance for citizens, who should be able to hold both national and European policymakers democratically accountable. We argue that the latest reform tilts the balance between technocratic expedience and transparency, prioritizing flexibility over democratic legitimacy.