ENSURING BUDGETARY DISCIPLINE AND PROTECTING THE FINANCIAL INTERESTS OF THE EUROPEAN UNION AT A NATIONAL LEVEL BY USING EU INSTRUMENTS AND POLICIES

Gheorghe Florin Bene and (BENE) Mihaela Sabau
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Gheorghe Florin Bene: The Chamber of Tax Consultants
(BENE) Mihaela Sabau: The Ministry of Public Finance

Revista Economica, 2017, vol. 69, issue 4, 18-29

Abstract: The growing need for financial resources claims, alongside with increased absorption indicators, the need to implement new ways of ensuring budgetary discipline at EU and the Member States level. Member States from the Euro-zone have a system of support and financial assistance from the ESM, while the non-euro area does not enjoy the same treatment from the European Council and the European Commission, thus creating further conditions of deepening disparities and discrepancies between Member States. European Commission supervises the development of the budgetary predicament and the level of Government debt in Member States, being able through the European Council to sanction states mainly in the issuance of bonds, or by requiring the involvement of the European Investment Bank to review lending policy, and ultimately by a deposit of up to 5% of GDP to the European Commission which can later be converted into a fine applied by the Member State by the European Council. The budgetary construction and the assigning of public acquisitions should ensure the reasonableness of both the estimate budget allocations for each project / acquisition prices and acquisition contracts assumed in goods, services and work acquired. This characteristic of public assessment processes, including those relating to public acquisition processes, is one of the requirements that should emerge from the conduct of the officials involved in acquisitions, with integrity in the discharge of the public duties. This can ensure the optimization of the acquisition process in the light of the interests and protection of public funds against irregularities and fraud committed in misappropriation of public funds through corruption in public acquisitions. The accuracy of the reports of the European Commission in assessing the budgetary situation and budget deficits of every state, keeps the real macroeconomic data reported to the European Commission and the sustainability of public budgets (in particular on the revenue side), so that through a rigorous analysis, we are able to detected budgetary positions inflated by generating public budgets through budget execution failure, thus also generating excessive budget deficits.

Keywords: financial; budget deficit; economic cohesion; budgetary discipline; economic crisis (search for similar items in EconPapers)
JEL-codes: H41 H42 H57 (search for similar items in EconPapers)
Date: 2017
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