The fiscal and budgetary impact of COVID-19 pandemic on the public finances of the Basque Country: the Basque system of fiscal federalism put to the test

Mikel Erkoreka
Additional contact information
Mikel Erkoreka: Ituna Center for Basque Economic Agreement and Fiscal Federalism Studies (UPV/EHU)

EKONOMIAZ. Revista vasca de Economía, 2021, vol. 100, issue 02, 120-149

Abstract: This article analyzes the fiscal and budgetary impact of the COVID-19 pandemic on the public finances of the Basque Country during 2020 and evaluates the performance and sufficiency of the system of fiscal federalism regulated by the Basque Economic Agreement. The research, which has a quantitative and qualitative character, employs the tools of fiscal and budgetary analysis - focusing on deficit and public debt management. The article concludes that the system of the Economic Agreement has withstood the demanding stress test provoked by the pandemic, maintaining unaltered the core principles that govern the Basque model of fiscal federalism: bilateralness in tax and financial relations between the Basque Country and the Spanish state, regulatory power and autonomy of tax management, and the principles of fiscal responsibility and unilateral risk.

Keywords: Basque Country; COVID-19; basque economic agreement; fiscal federalism; public debt (search for similar items in EconPapers)
JEL-codes: E62 H63 H77 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.euskadi.eus/web01-a2reveko/es/k86aEkon ... dpubl=97&registro=11 complete text (application/pdf)

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:ekz:ekonoz:2021208

Ordering information: This journal article can be ordered from
Dpto. de Hacienda y Finanzas, Gobierno Vasco, C/Donostia-San Sebastián, 1, 01010 Vitoria-Gasteiz, Spain

Access Statistics for this article

More articles in EKONOMIAZ. Revista vasca de Economía from Gobierno Vasco / Eusko Jaurlaritza / Basque Government Contact information at EDIRC.
Bibliographic data for series maintained by Iñaki Treviño ().