BUDGET BALANCE IN THE 2012 CONSTITUTIONAL REFORM

Piero Giarda ()
Additional contact information
Piero Giarda: professor Emeritus at the Catholic University of Milan

Rivista Internazionale di Scienze Sociali, 2018, vol. 126, issue 4, 335-350

Abstract: The Italian Constitution was amended seven years ago to set two new constitutional principles: budget balance and public debt sustainability. The first rule allows for a budget deficit and countercyclical budget policies when the economy suffers cyclical downswings, and in other exceptional economic conditions to be defined by special legislation. The new Constitution restricts debt financing options, excluding deficit spending as a tool to foster long term dynamics of aggregate demand. The reform has not provided automatic mechanisms to prevent violation of the principles; it also seems that the Constitutional Court will have limited power to defend them. A balanced budget will thus suffer the destiny of other relevant constitutional principles, such as the progressivity of the tax system, the fiscal autonomy of regional and local governments, equal levels of protection in the supply of public services. The application of liberal or social ethics in public policy still lacks political defenders.

Keywords: EU fiscal rules; Balanced budget; Potential output (search for similar items in EconPapers)
JEL-codes: I20 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
http://riss.vitaepensiero.it/scheda-articolo_digit ... 004_0335-369223.html (text/html)
Yes

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vep:journl:y:2018:v:126:i:4:p:335-350

Access Statistics for this article

Rivista Internazionale di Scienze Sociali is currently edited by Maurizio Baussola

More articles in Rivista Internazionale di Scienze Sociali from Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore
Bibliographic data for series maintained by Vep - Vita e Pensiero ().