Portugal's European Integration

The Good Student with a Bad Fiscal Constitution

Bibliographic Data

ID8020788
AuthorsJorge Braga De Macedo (0000-0001-5168-1510, Organisation de Coopération et de Développement Economiques, corresponding author)
Year2003
Volume8
Issue1-2
Pages169-194
Publication date2003-03-01
Open AccessNo
TypeARTICLE
VenueSouth European Society & Politics (JOURNAL)
Journal identifiersISSN: 1360-8746 • E-ISSN: 1743-9612
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/13608740808539648
OpenAlexW2004968180
LanguageEN
Citations received3
References cited5

This study examines the role of monetary and fiscal policies in Portuguese economic regime change, which culminated in the entry of the escudo into the ERM (Exchange Rate Mechanism) of the EMS (European Monetary System) in 1992. It measures trends in nominal and real convergence and attributes the current divergence to the resilience of the fiscal constitution. In addition, it discusses the structural changes achieved during the period of convergence and those still needed for Portugal to avoid suffering the 'euro hold-up'. It illustrates the limits of external pressure and the constraints imposed by the historical fiscal model. Indeed, the Portuguese experience shows that the euro, by itself, cannot change the fiscal constitution. Different policy areas need specific reform efforts; otherwise they stall and affect each other in a negative way

Constitution · Convergence (economics · Divergence (linguistics · Economic policy · Economic system · Economics · European Monetary System · Exchange rate · Exchange-rate regime · Fiscal policy · Fiscal union · International economics · Macroeconomics · Monetary economics · Political science · Portuguese · Fiscal Policies and Political Economy · Global Financial Crisis and Policies · International Development and Aid · Law

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