Yes, the European Union Stability and Growth Pact needs reform, because as it is written now, it is not strong enough. Countries in the European Union need to make sure that they are acting within the interests of others, and not simply bailing out the lowest performing countries. The currect pack does not do this, and needs revision.
Although the European Union reformed the Stability and Growth Pact in 2005 to ensure that its tenets would be enforceable, the reforms did not go far enough to ensure that the purpose of the Pact would be perpetuated. The purpose of the Pact is to ensure that countries act responsibly fiscally and to ensure that the Euro retains its value. If a country using the Euro ruins its economy, then the Euro is also diminished. The value of having a currency such as the Euro is that its value is more stable than, for example, the Russian Ruble, which is based on the Russian economy alone. If the Russian economy crumbles, the value of the Ruble also crumbles. However, because so many countries are part of the European Union, the value of the Euro can remain more stable. Therefore, the Stability and Growth Pact is very important to ensure that the value of the Euro remains constant and the stability of the economies in the European Union likewise remains constant. However, in the past the Pact has been too far-fetched to ensure that the EU can enforce the tenets of the Pact. Therefore, the Pact should be reformed to make sure that the tenets can be enforced across the board for every country--despite the situations they may face. However, because of the new challenges and controversies economies face today, between the balance of regulation and free market capitalism for example, the Stability and Growth Pact needs to be amended so that it can account for these new challenges. A new Pact must ensure that there is some kind of net to catch economies that fall under corporate greed and bank failure. Because of the new challenges facing economies with corporations and more international trade, the Pact must also change to accomodate these new pressures.