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Why was Maastricht controversial?

Merel Koning Knol
Merel Koning Knol
2025-11-05 04:45:28
Count answers : 26
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Maastricht was controversial because it created an incomplete, rigid, and austerity-prone fiscal governance. The Maastricht criteria set national deficit targets below 3 per cent and debt levels below 60 per cent. The Treaty did not consider that fiscal targets matter in aggregate as a complement to the single monetary policy. Distributional conflicts became systemic. The euro became the hard budget constraint for aggregate spending in the monetary union. The hard budget constraint also affects other policy areas, and the question is always the same: who pays?
Pleun van der Lede
Pleun van der Lede
2025-10-25 03:59:29
Count answers : 28
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Maastricht was controversial because for many politicians in Germany, the French proposals for an economic government were a taboo. The French side made it clear that central bank independence should only be realized within a strong political framework at the EU level. The debate revolved primarily around the strength of the implementation mechanisms and the use of sanctions. Thirty years on, it turns out that the Maastricht concept of stability was too narrow for monetary union. The fiscal framework itself – particularly its deficit and debt targets – has proven to be of limited functionality.

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