作者：周茂荣 周念利

Abstract : Along with the deterioration of the overall financial and economic situation in Euro area, the contradiction between stability and growth becomes more distinct than before, so the fiscal provisions  under the framework of Stability and Growth Pact have triggered a few disputes. Basing on the fiscal theory of price level, this paper attempts to demonstrates the necessity of the fiscal restraint under the framework of stability and growth pact in European Union from the perspective of maintaining the stability of equilibrium price and exchange rate in Euro area.