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Optimism is bad for fiscal outcomes | VOX, CEPR Policy Portal

In the history of the EU’s Stability and Growth Pact, some governments have used optimism over medium-term growth to postpone fiscal adjustment or justify expansions. In 2011, EU member states were invited to strengthen their medium-term fiscal planning, but EU surveillance is still very much centred on the year ahead. This column argues that multiannual expenditure paths

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