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How Robust is the Eurozone's Political Economy?
On paper, the Stability Pact places clear obligations on national governments to reduce their annual deficit and debt, and to do so promptly or face big cash penalties. However, this technocratic agreement ignores the fact that each government is democratically accountable to its citizens as well as to the European Commission. This puts pressure on the European Commission to fudge the obligations it places on national governments in order to maintain the momentum for further European integration.