Ineffective Unworkable Stability Growth Pact

In in effect(p) Unworkable Stability Growth covenantAbstractThe paper showed nominates a discussion and evaluation of the ope proportionalityn of the financial discipline instrument it was designed in the early 1990s for inclusion body in the Maastricht conformity, re okd in 1997 with the knowlight-emitting diodegeability of the Stability Growth accordance (hereafter, SGP), and improve in 2005. Assuming that we need it for reasons rehearsed in literature, the SGP impart be evaluated and discussed in relation to its powerfulness to date. Although shimmy legal philosophy is non study extensively, a brief oerview of the SGP crisis in 2003 will be sufferd, fol commencemented by a sancti iodined/ frugal analytical manakin perspective with the SGP examined infra the lens of the eye of compressible and enceinte legal philosophy primarily. With the legal principles exposing the economics behind the SGP, the holds and kickshaw debate is prolonged supporting evid ence that the current framework has proved to be pitiable. The methodology continues to analyse the SGP framework with a particular commissioning on the economic crisis of Greece. The lessons illuminated from this particular case study will boost bequeath possible recomm poleations to help the SGP become a to a owing(p)er extent effective regime, in type of ageing populations and a need for gain enhancing forms.1. accessWhile m unitarytary form _or_ system of government is delegated to the European Central Bank (ECB) who face a ch e precise last(predicate)enge of convincing speculators that they argon serious about the maintaining of flip-flop rate stability and that they will non use the option of devaluing (Jacquet 1998), monetary policy remains in the hands of home(a) authorities. Member States (MS) should however, check to the Treaty on European Union (hereafter, Maastricht) abide by with the principle of break down public finances. To ensure this, the Treaty pr esents a no liberate-out clause which prohibits the ECB, and some naked(prenominal) nations of rescuing a MS in financial trouble. This was yet protected by the substructure of the Stability Growth covenant (SGP) which further qualify rules and procedures.A primary source of European Union justness is provided for by the power-giving EU treaties which set broad policy goals and establish institutions that, amongst different things, fag end ordain decree in order to achieve these goals. The SGP is precisely this further legislation that is required to spend a penny force and credibility to the Treaty. The legislative acts of the EU whitethorn come in twain forms directives and enactments. In the case of the SGP, it consists of two council regulations 1466/97 and 1467/97 which are directly applicable and binding in all MSs without the need for any further domestic help legislation.The fundamental objective for the SGP is to describe unjustified famines and end the m as soon as possible1. however, the SGP, in its original, domesticizeed and current form is non effective. Whilst initiating debt and shortfall cuts, it fails to stimulate and enhance growth. It has no end to criticisms in applying pecuniary discipline. This has led to non provided the SGP crisis cladding the European Court of Justice in 2003 where the Economic and Financial personal matters Council (ECOFIN) failed to implement sanctions on delinquent MSs just more signifi usher outtly the new-fangled crisis of Greece, where the failure of the SGP to discipline their budgetary discipline has led to spiralling debts forcing the EU to whitethornbe eat its own words in relation to the no bail-out clause. This not only chthonianmines the credibility of the SGP as a framework, but calls into question the functioning of the European monetary Union as a whole. With the treaty be described as an ope dimensionnal recipe and repeatedly being considered as similarly weak, w ill this finally spur policy-makers into producing a much potenter conformity?2. Designing, Building and Naming the Ship From Maastricht to SGP2The aim of the following chapter is to provide a brief focused review of how the SGP framework was formed.The debate leading up to the creation of the SGP began long before the Maastricht treaty was signed in 1992. after the experience of the 1970s and 1980s it became illuminate that a new focus was required on forte enclosure stability and financial discipline, and it became real that there was a need for institutional mechanicss. In particular, the absence of a monetary rule meant that the free rider problem was feared as MS may be tempted to run ebullient dearths in the expectation that the financial Union will bail them out (Begg Schelkle, 2005). Later, this became the one of the most take hold rationales for the SGP to prevent the European Central Bank (ECB) from being pressurised for an inflationary bail out (Eichengreen Wyplosz, 1998).In 1989, The Delors Committee composed of central bankers reported that economic and fiscal ratiocinations would fox to be icy within an tallyd macroeconomic framework and be subject to binding procedures and rules (Delors Report, 1989). This would also help to cancel differences in public sector borrowing requirements in the midst of MSs and present imposed constraints on the size of budget debt and deficits (Delors Report, 1989), thereof limiting the use of fiscal policy itself. This not only coalesced but reflected both the Keynesian coordination and fiscal discipline arguments.The vital question was how? The European Union (EU) was face with key players representing different rationales. Whilst France wanted an economic government the Germans central focus was on price stability, and they were adamant that excessive deficits mustiness be avoided. thus the result was the Treaty on European Union 1992. Whilst Article 99 states that MSs shall regard t heir economic policies as a matter of common stir and shall coordinate them with the Council, Article 104 states that Member States shall avoid excessive government deficits. The Treaty requires MSs to satisfy two fiscal lap criteria to qualify fully as electromagnetic unit members to keep general budget deficit/gross domestic product under 3% and nominal gross debt/gross domestic product below 60% (Article 104c Protocol) (hereafter the rules of the SGP).Furthermore, the excessive deficit procedure (electronic data processing) is define and shaped by the interaction between the Council and the thrill. For Euro MSs, this can lead to financial sanctions because of possible negative spillover occurring finishedout the Monetary Union as a result of established excessive deficits. However the procedure, as laid down by the Treaty, is in no wiz mechanistic. Ultimately it leaves the discretion of whether to take action to the Economic and Financial personal business Council (ECOF IN). The EDP protects MSs from action in the form of forgiveness clauses which accommodate difference of opinions from the rules, for exercising resulting from an idiosyncratic shock, given that MSs meet specified conditions. This means MSs are windlessness able to participate in emu (Article 104(c) 2a Article 104(c) 2b). For the debt ratio rule, the be given clause is ambiguous in its wording as the satis featureory footmark for approaching the reference value has not been defined and this has been interpreted very freely and at the discretion of each MS. It has proved difficult to unionize a formal rule covering all possible events. It was kindle to blood, that the SGP provided a further detailed specification regarding the interpretation of the deficit ratio emphasising the importance placed on it, yet it remained silent on the debt criterion. This can be interpreted as the SGP effectively overlooking the debt/gross domestic product ratio as being unimportant in the app lication of fiscal discipline.As Maastricht aimed at bringing into line the states whose fiscal history in earlier periods had given rise to problems, Maastricht offered a great incentive of joining electromagnetic unit successfully.3 However, pessimists worried that Maastricht fatigue would set in once countries were admitted to EMU. It was thought that countries had been pressure to suck their stomachs in to squeeze into Maastrichts tightly tailored trousers, but upon EMU entry, they would expel their breath violently (Eichengreen 1997). Beyond doubt, a further mechanism was required to ensure that MSs sustained compliance. The EU faced two options they could any continue to rely on voluntary agreements where MSs agreed to meet convergence criteria after EMU was fully operational or the EU could impose explicit rules that would elaborate on and give further instructions from Maastricht. Although the invention of the SGP implied that the EU chose the latter, it soon came to lig ht that in fact the EU had implicitly chosen the former.The Original Stability and Growth PactPrior to the introduction of the Euro, the German government became extremely anxious about giving up the reputable Deutschmark in privilege of the new single funds that would include fragile economies who lacked stability reason. Germany already maintained a low inflation policy, and through the SGP the German government hoped to limit the pressure another(prenominal) MSs could exert on the European economy. They hoped to re ladder the margin for discretion left over(p) by Article 104 of Maastricht by ensuring that the EDP would be implemented check to a regulate timetable and the eventual sanctions would be levied according to a prede marginined formula (Costello, 2001). However such an machine-driven sanctioning mechanism was considered foreign by some MSs.In 1996, the SGP was finally concluded4 as being out-of-the-way(prenominal) less mechanical than the initial proposal (Fis cher et al 2006). Based on two council regulations, it took the force of law, with lasts to be interpreted within the original bar legislative framework of the Treaty. Fiscal policy remained decentralised but the SGP hoped to combine restraint with flexibility, whilst representing a backbone of fiscal discipline in EMU to primarily address negative spill-overs from MSs (Fischer et al 2006). Although the Commission reserved its serious of initiative, the Council at last retained discretion in making decisions within an boilersuit rule based framework.Whilst some pleadd that the SGP was no more than a clear affirmation of Article 4 (Jacquet 1998), others suggested that the SGP builds on the Maastricht provisions (Fischer et al 2006), by presenting a monitoring process, based on Article 99, which combines management through stability programmes and a quasi automatic warning system for countries scummy from excessive deficits based on Article 104, often referred to as the burden and disciplinal arm.The stoppage arm requires Euro members to submit stability programmes while non-Euro members present convergence programmes. Both are required to include the medium term objective (MTO), and if applicable, an adjustment pass towards it. The MTO is required to be close to relief or in surplus and the rationale is to ensure sustainable fiscal positions in the long run whilst also creating sufficient room for fiscal policy to smooth out fluctuations in the on the spur of the moment run without violating the 3% deficit ceiling as specified in the SGP regulations. Furthermore, it is interesting to note that although the programmes must be submitted to the Commission, it may be examined by the ECOFIN Council which may hold to make its opinion public, and this can be understood as appellative and shaming. In addition, if the Council forecasts a deviance from the budgetary position it may ask to address a recommendation to the respective MS. However this is not obligatory, bring out the Councils power as it can take it upon itself to apply peer pressure.The disciplinary arm however, in contrast to Maastricht, provides for a much stricter and formal procedure, designed with a rigorous contrast of action set with time limits, to use fiscal discipline in the SGP (Dutzler Hable 2005). Whilst an excessive deficit is established upon a breach of the 3% deficit or 60% debt rule under the Treaty provisions, the SGP nonetheless focuses on the 3% deficit ceiling.This is arguably, a error on the part of the SGP creators. The inability of monitoring deficits due to difficulty in time lags means that data is imprecise. It can take more than quadruplet familys to detect disobedience reliably, which means that disciplining MSs is even more unlikely.5 because, focusing on the debt/GDP ratio would be more sensible. After all, it is the jibe debt stock that necessarily to be financed. Focusing on the short term requirement does not do much in pr eventing MSs from getting themselves into situations where they may need to be rescued as the Greek experience illustrates. Because debt is a persistent stock and not a flow, it can help policymakers in nation states to choose more suitable and reasonable plans, which will help lower the probability of nations facing a crisis such as the one faced by Greece. The persistence of a debt will help give governments an incentive to keep debt at lower take aims in order to be able to adjust to unforeseen pot more easily. There is a question of how to set that debt limit but that can easily be done using the empirical work of Reinhart and Rogoff (2009), and others, on the links between debt and growth rates.Nevertheless, the EDP clarified the following. Firstly, the especial(a) circumstances are defined as an annual fall of real GDP of at least(prenominal) 2% meaning that countries will be mechanically exempt from further action. Furthermore, a fall of between 0.75% and 2% may be deemed exceptional if MS provide evidence. The deadline for correction of excessive deficits should be completed in the year following its identification unless there are special circumstances these were not defined. As the rules in the SGP are insufficiently flexible, they allow for breaches that ultimately may undermine the operation of the SGP. However, because the procedural steps clarify that the quantify between reporting a deficit above 3% GDP and imposition of sanctions should be no more than 10months, it means that, if no corrective action is interpreted in adequate time to correct the deficit by the year following its identification, sanctions will be imposed. Financial sanctions will be in the form of non-remunerated pay backs which will take the value of 0.2% of GDP and rise by one-tenth of the excess deficit up to a maximum of 0.5% of GDP. Additional deposits will be required each year until the excessive deficit is removed. If the excess is not corrected within two old ag e the deposit will be converted into a fine otherwise it will be returned. Ultimately, this means a MS can run excessive deficits for at least three years before their deposit is converted into a fine.Although the inability of monitoring deficits is unfortunate, the effect of legal and institutional weight given to the corrective arm means that the short term requirement of keeping government deficit below 3% is treated with much more seriousness than the preventive arm. This is ironic since in practice, the excessive deficit procedure is not properly enforced as no MS has yet been fined. The preventive arm on the other hand is enforced, yet its lack of formal and legal basis and no procedure to punish a failure to comply with the objective of a medium term balance further emphasises the lack of importance placed on the preventive arm. (Rostowski 2004).3. Soft Law to Softer LawThis chapter will provide a review of the SGP as a form of proper regulation up until the SGP crisis in 200 3 which led to the consequent reforms. The hard versus soft law debate will be discussed.Difficulties facing the SGP after its InceptionWhilst some(prenominal) Euro countries wagerered their fiscal outcome by moving their budgetary positions into surplus, others such as Germany, France, Italy and Portugal remained trapped in high deficits (Fischer et al 2006). The implied emphasis on correcting deficits sooner than preventing them (because on its sanctioning nature) induced a failure to achieve medium term balance meaning that they had little scope to allow automatic stabilisers to operate once economic conditions deteriorated (Rostowski 2004). They were criticised as not being tuned into the cartel and this failure of key MSs to respect the requirements of the SGP just a few years after its inception, triggered a heated debate regarding a potential reform on the architecture of the SGP (Fischer et al 2006). Though some may argue that countries would have faired worse had ther e not been a SGP6, the operation of the pact brought to light manages which where nevertheless important. A continued period of low growth levels triggered by the dot-com crisis in 2000, eroded budget balances to the point where fiscal policies had to become strongly pro-cyclical to respect the 3% limit (Wyplosz, 2008), highlighting the fact that the SGP encourages pro-cyclical behaviour. In addition, the SGP discouraged growth and economic reform, most importantly in the labour market. REFERENCE?Although these are major criticisms of the functioning nature of the SGP itself, whats more is that the SGP is perceived as being contradictory although created as hard law it takes the effect of soft law. With a legally binding nature, there should be little room for discretion, however as mentioned the sanctioning is not automatically applied (Schelkle 2005) to countries who are in breach of the EDP but rather, the members of the Council are required to vote, and only by qualified majori ty can countries be declared to have excessive deficits (Rostowski 2004). The council composing of finance ministers from MSs, implies that not only is ECOFIN dependant but it is also partial (Schuknecht 2004). As concluded by Eichengreen and Wyplosz (1998), the SGP will in this respect have some, but not maximum, effect. As long as imposition of sanction remains a political decision in the hands of national governments, it is highly unlikely that epic and influential states will be punished (Rostowski 2004). This was proven in the European Court of Justice (ECJ) crisis of 2003. Due to the fact that EU officials will be reluctant to levy fines and lose goodwill, EU decision makers will compromise, allowing the 3% deficit ceiling to be violated. MSs will be reluctant to vex fines and suffer embarrassment, and therefore governments will also compromise by modifying their fiscal policies just enough to obey the rules, and avoid forcing the EU to impose sanctions. therefore although the lack of hard law perhaps implies that the sanctions were to act as a deterrent for MSs from violating the rules, the presence of the sanctions which will never be imposed provides no incentive whatsoever for countries to comply with fiscal discipline. This is not only in the best interests of the respective MS but for the best interests of EMU as a whole. Furthermore fines may adversely affect a MS, do conditions to worsen, leading to recrimination and fortuneing a blow to EU solidarity (Eichengreen Wyplosz 1998). It makes no palpate to place emphasis on penalising MSs after the rules have been breached rather the EU needs to do more to prevent these breaches from occurring.Not surprisingly, to date no country has yet incurred fines. Evidence suggests that the SGP has created divergence between different coat MSs (von Hagen 2005). With the three largest countries seemingly unwilling to push for underlying balance, the Pact seems to have worked well for a group of smaller co untries (as well as Spain) (Annett, 2006).7 This demonstrates that enforceability is not uniformly weak generally small countries have respected the SGP provisions, the only exception being Portugal (Rostowski 2004). This suggests that either enforceability needs to be applied equally, or the pact must regain the support of the larger MSs, especially Germany and France who fought for the creation of the pact. Perhaps a more vital question is why the pact lost support of the key players in the EU. If governments do not conceive fines will be imposed in bad times, what incentive do they have to run fiscal surpluses in good times? The following SGP crisis was therefore inevitable.The Original SGP CrisisIn 2003, Germany and France established excessive deficits. However, the European Council (described as the dozing watchdog in Heipertz Verdun 2004) voted to hold the EDP in hanging as it is permitted to do so by the articles in the Maastricht Treaty, causing great uproar for the exis tence of the pact. As described by Begg Schelkle (2004), The ECOFIN council decision was wide interpreted as the death-knell for the Stability Growth Pact. The Commission challenged this decision by presenting the case to the ECJ whose judgement8 left many unanswered questions. This in turn led to legal uncertainty and the loss of credibility for the EU fiscal framework (Dutzler Hable 2005).More specifically the Council stated that France Germany had established excessive deficits. In the case of France, Council recommendations on basis of art 104(7) set a deadline for taking clutch measures to reduce their deficit. Once the deadline was reached, the Commission observed France had not taken effective action upon the recommendations (Dutzler Hable 2005). The case of Germany differed slightly although another deadline was established, in face of the economic slowdown facing Germany, the content of the recommendations was moderate. Upon reaching the deadline, Germany had, from th e Commissions point of view, taken incapable measures to implement Council recommendations. Thereafter the Commission issued further recommendations to the Council in order to kindle with proceedings with regard to both MSs, and in particular, to take action in face of art 104(8) and art 104(9) EC respectively (Dutzler Hable 2005). Although, from the Commissions point of view, this should have resulted in the Council immediately resuming the EDP (Dutzler Hable 2005), the Council upon suffrage, chose to suspend the EDP for both Germany and France. This decision was not unanimous most of the smaller countries (who incidentally hold make better fiscal positions) voted in favour of the Commissions recommendation, but the larger countries formed a blocking minority (Fischer et al 2006). As commented by Dutzler Hable (2005), in essence, the ECJ had to deal with two necessitates by the Commission. On one hand it was asked to annul the decision of the Council of not following the fo rmal instruments contained in the Commissions recommendations pursuant to art 104(8) and 104 (9). On the other hand it was asked to annul the Councils conclusions, because it involved the decision to hold EDP in abeyance.The Court, in its judgement9, demonstrated an appreciation of both parties. It ruled that the Council can and must hold the EDP in abeyance if the majority in Council does not vote to sanction the MS in question. However, it ruled in favour of the Commission in stating that the Council cannot adopt political conclusions (Dutzler Hable 2005).The judgement proved fateful to the existence of the pact as it failed to address important questions and clarify the institutional balance of powers between the Council and the Commission. It not only called into question the political willingness of countries to stand by to the prior agreed fiscal rules but it remains unsettled if the issue is to arise again in the future. Although Dutzler Hable (2005) comment that it remain s unclear whether the EDP can be continued without the Councils approval, it is likely that the sanctions will never be applied without the backing of MSs as this would never be politically accepted. Therefore the question of whether the SGP effectively enforces MSs to obey fiscal rules is brought to light. The extent to which the system of fiscal surveillance and economic policy coordination binds the MSs and institutions remains unclear. The 2003 crisis called for a refocusing of the SGP and a need for political agreement opening the path to reform the SGP architecture (Begg Schelkle 2004), as supported by many of its critics.Question of Reform?To fix the credibility of the so called hard-law fiscal coordination, in 2004 the Commission suggested that an enriched common fiscal framework with a strong economic rationale would allow differences in economic situations across the enlarged EU to be better catered for and would add up to greater credibility and ownership of the SGP in the MSs building on the culture of sound fiscal policy established in the EU over the last decade (Commission 2006).In 2005 the reforms took place (legal provisions in EU Council (2005a,b)). The revise version arguably offers some answers to what was known as the inadequate SGP. There are changes in the preventive/corrective arms and the EDP, for suit a variety of standards such as the position in the cycle, the nature of expenditure and the level of public debt must be taken into beak to calculate whether a MS is in breach of the 3% deficit rule (Couere Pisani-Ferry, 2005), emphasising further flexibility. contrastingly, there are no changes in governance. The voting methods and basic procedures remain the same, as changes to these would require modifications to the Maastricht treaty. Though the changes are welcomed (Fatas Mihov 2003), the SGP may still be identified as the dog that would never burn up (Heipertz Verdun 2004). For many critics, it was unruly that a softer pac t was coming into existence, as a harder pact was desirable. However the Commission role has been strengthened advantageously in that it can now give early policy advice and is under obligation to file a report if a budget deficit has been violated.The changes are summarized in Table 1.Original PactReformed PactPreventive RuleMedium-term Objective(MTO)All MS have an MTO ofclose to balance or insurplusCountry-specificdifferentiation of MTOdepending on debt level andpotential growth, allows for1% deficit if debt is lowIn case of aberrancefrom MTONo adjustment path or actionSpecifiedCommission can issue directearly policy adviceadjustment path specified asa minimum fiscal effort of0.5% of GDP and countercyclicalstructural reforms can betaken into account to allowfor deviationCorrective RuleMonitoring if DeficitExceeds 3%No obligation forCommission to preparereportno mitigating other relevantfactors (ORF) specifiedCommission will alwaysprepare report, taking intoaccount whether defici t exceeds investmentexpenditure. ORF can justifytemporary excessDebt PositionNo specific provisionsSufficiently diminishingdebt can be taken intoaccount qualitativelySystemic pension reformscan be taken into accountfor five years if reformimproves long-term debtposition profuse DeficitProcedureExcessive deficit must befixed in year followingidentification if not, a noninterestbearing deposit mustbe made with theCommission that is turnedinto an appropriate sizefine if situation persists Nominimal fiscal effortdefined No repetition ofsteps foreseenCorrection can be postponedfor one year if ORF appliesMinimal fiscal effort of0.5% of GDP to reduceexcessive deficit requiredDeadlines for correctingdeficit can be extended if necessary steps are taken orif unforeseen adversecircumstances occurTable 1 Schelkle 2007Analysis Under Soft and terrible LawHard law instruments can be distinguished from soft law in that they are fully binding. When MSs do not comply with these laws they are breakin g the law and may be sanctioned accordingly. Contrastingly soft law instruments are negotiated in good faith and provide a new framework for cooperation between MSs. Whilst favouring openness and flexibility, policy processes follow a codified practice of benchmarking, target setting and peer review. This allows national policies to be directed towards certain common objectives. The essence of it is not to provide a single common framework but instead to parcel of land experiences and to encourage the spread of best practice. By avoiding regulatory requirements, it allows experimentation whilst procreation policy improvement and possibly policy convergence. These can be seen as managing techniques which provide means to promote policy coordination without further undermining sovereignty. An example in the general EU context is the OMC method used under the capital of Portugal strategy. Whilst soft law is easy to agree on but hard to enforce, hard law instruments on the contrary ar e difficult to agree on but easy to enforce. According to Wessels and Linsenmann (2001), EMU introduced both hard coordination in fiscal policy in the form of the SGP and soft coordination in economic policy in the form of Broad Economic policy guidelines (BEPG). If a country deviates from the guidelines the Council can as in the case of Ireland adopt a non-binding recommendation against the respective MS (Jacquet Pisani-Ferry 2005). Unlike the EDP, the guidelines are not supported by any sanction. However, there is a fixed arrange of reporting and a predetermined timetable is followed, rather than allowing for ad hoc decisions by policy makers that set the agenda for discussion and action. Therefore, upon this insight, it suggests the SGP takes the form of hard law in that it is legally binding, but soft law in that enforcement is not automatic. Of course there are many shades of softness in the SGP framework. The preventive arm with its close to balance or surplus provision, w ithout sanctions is rather soft. By contrast the corrective arm with the ultimate threat of sanctions comes much close at hand(predicate) to hard law (ESB working paper 2004.)This is not effective as it implies that only when things are wrong, is it time to sanction and this is an ultimate downfall of the SGP design.It is therefore confusing that following the reforms, critics claimed that the hard law institution for fiscal surveillance has become soft. Furthermore, critics claim that the SGP has become so soft that the functioning of the SGP is jeopardized (Schelkle 2007). Schelkle (2007) refutes this claim by arguing that the revised pact will be better suited in constraining MSs in their fiscal behaviour since the new rules will be perceived as binding constraints that shape domestic efforts. An apparent paradox exists the weakening of obligation to the pact may in fact make it difficult to evade, although it implies a softening of the governance framework.Abbott et al (2000) h ave proposed that there are three dimensions of governance all of which characterize the degrees of legislation obligation, delegation and precision. This allows one to compare and contrast the original SGP with the improve version for effectiveness of instruments and for the relationship between these dimensions. pact has been defined as a commitment arising under rules. At the two ends of spectrum, hard law is defined as sanction-able obligations whereas soft law are norms which are too general to create specific duties. Delegation, whilst at the hard law end of spectrum would mean an international court or organization given powers to break a dispute, contrastingly with the soft law end, which implies diplomacy. Precision defines whether a rule indicates the type of action that needs to be taken and by whom it needs to be taken in order to comply with the rule. For example, the BEPG state the objectives, but not how these objectives could be met. As the following table summa rises the changes from the original to the revised pact, it can be understood the changes were not a uniform move from hard to soft law.Original PactRevised PactObligationhigh to mediumQuasi-automatic sanctions underEDP but political de