On the contrary: the doubling of the average EU government debt level in 25 years was accompanied by a more than quadrupling of the average unemployment level. Also in the Netherlands, rapid increases in government debt were attended by increasing unemployment levels. These recent experiences show that accommodative fiscal policies are not a guarantee for reducing unemployment. 1  J.M.
Buchanan, “The Deficit and American Democracy, Center for Study of Public Choice”, George Mason University, 1984, Mimeograph, pp.8-9. BIS Review 36/1997  -3-  Let me now briefly discuss the second issue – what are the elements of the pact for stability and growth?