BIS central bankers’ speeches  3  No simple fiscal rule would have prevented the risky over-dependence on bubble-related tax sources. Certainly, the Fiscal Compact does introduce a tighter set of rules on future (postProgramme) fiscal policy than was embodied in the original Stability and Growth Pact.
However – and this is important given the potential for the unexpected to happen in an economy as globalized as that of Ireland – the operational rules of the Fiscal Compact, which are already decided as part of the so-called “Six-Pack”, provide that the European Commission’s operational assessment of whether an excessive deficit exists involves considerable discretion and judgement.