Fiscal policy in economic and monetary union : theory evidence and institutions This book explores the origins rationale problems and prospects of the European fiscal policy framework. It provides the reader with a roadmap to EMUs budgetary framework by exploring its theoretical and empirical foundations uncovering its historical roots and emphasising its supranational nature 1. EMUs fiscal rules in a historical perspective 2. The Maastricht Treaty and the Stability and Growth Pact 3. Medium term fiscal targets 4. Cyclical stabilization 5. Interactions between monetary and fiscal policies 6. Public investment 7. Long term sustainability 8. Fiscal federalism 9. Politics and the pact 10. Fiscal rules and statistics 11. Reforming EMUs fiscal rules 12. National budgets and the EU budget 13. Postscript : a new stability and growth pact