3  Criteria for a viable fiscal framework on the basis of the former Stability Pact of 1997  In order to place those fiscal and economic objectives of the Stability Pact which I mentioned earlier on a viable operational footing, the fiscal framework must fulfil the following criteria.18 Simplicity, transparency and consistency – this is particularly important if the framework is to appear  14  For a debate along the lines of this argument see Harald Uhlig (2002), One money, but many fiscal policies in Europe: what are the consequences?
Tilburg University. Center for Economic Research Discussion paper 2002-31. 15  The fact that sound public finances have a positive effect on an economy’s long-term growth is well documented in empirical growth analyses.