On March 2nd 2012, European policymakers signed a new fiscal compact in record speed. Its main pillar consists of the implementation of domestic debt rules, which should ideally be on a constitutional level, similar to the debt brake instituted by Germany in 2010. But after the election weekend in France and Greece, left-wing and radical parties voiced opposition towards this policy: Hollande in France demands a growth pact in addition to the fiscal compact, while Greece’s left parties want to remove the austerity measures completely. A fair question is raised: Are the economic impacts of stability and growth programs contrary to each other, or do they constitute interrelated necessities?
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