This paper examines some possibilities for taking the consequences of the financial and economic
crisis into account when implementing the Stability and Growth Pact, focusing on the
possibilities and limitations of a “flexible” application of the Pact. The paper also deals with
certain points of orientation in respect of tailoring measures for crisis management or dealing
with a persistently high indebtedness of an EU Member State that can be found in the
regulatory framework of the Pact but remain outside of its scope of application.
The author concludes that the Stability and Growth Pact provides a workable and sufficiently
flexible legal framework for the management of the upcoming consolidation measures necessitated
by the financial crisis, although there is still considerable potential for a more forceful
application of the preventive actions outlined in it. Effective and timely implementation of the
Pact will largely depend on the EU institutions’ consistent and persuasive application of its
policies, provided that the individual circumstances in each case decided are granted sufficient
consideration. In respect of the permissibility of financial support measures due to an
impending state bankruptcy of an EU Member State, the regulations on fiscal discipline suggest
a restrictive interpretation of the provisions in the Treaty that regulate an exemption
from the No-Bailout clause.