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For another, the Stability and Growth Pact needs reforming in the direction of the United Kingdom's "Golden Rule," which makes the distinction between current and capital spending. Meanwhile, on the fiscal side, the Schroder government has raised taxes during the current recession in hopes of bringing the budget deficit back down to the Stability and Growth Pact target of 3 percent of GDP. Reform of Stability and Growth Pact Could Weaken Eurozone |
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