Stability and growth pact

The stability and growth pact, or SGP, played a key role in the establishment of the euro. The initial worry – especially from Germany and France – was that some eurozone countries might get around the European Central Bank’s monetary policy by increasing public spending and running large deficits. Hence the SGP, which limits each country’s budget deficits to no more than 3% of their total economy.

Ironically, France and Germany have broken those rules in the past, cutting taxes to stave off recession, which infuriated smaller countries that kept their budgets in line.

MoneyWeek magazine

Latest issue:

Magazine cover
Party's over for Putin

The only portfolio safe from Russia's rout

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Hedge fund manager Hugh Hendry: 'It felt like the sun rose only to humiliate me'

In a series of three short videos, Merryn Somerset-Webb talks to Hugh Hendry, manager of the Eclectica hedge fund, about everything from China to the US, Europe, and Japan.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


19 December 1932: BBC World Service begins

The first royal Christmas message by George V gave the fledgling World Service an early boost six days after it was founded in 1932.