Setting targets for government budgets under the EU Stability and Growth Pact and ageing populations

Heikki Oksanen

International Journal of Economics and Business Research, 2010, vol. 2, issue 1/2, 87-111

Abstract: Originally, in 1997, balanced budget or surplus was set as medium-term objective (MTO) for government budgets under the European Union Stability and Growth Pact, while in 2005 the MTOs were made country-specific. They were agreed for a transitional period only, until the criteria for taking into account implicit pension liabilities are established. Work on this is still unfinished (May 2009). The paper specifically addresses the question of setting MTOs under alternative rules for the public pension system, based on 'actuarial neutrality across generations' as a benchmark for intergenerational equity. The repercussions of the current crisis are discussed at the end.

Keywords: government budgets; medium-term objectives; public deficits; targets; public pensions; state pensions; pension liabilities; ageing populations; old people; elderly people; European Union; EU; Stability and Growth Pact; SGP; balanced budgets; budget surpluses; actuarial neutrality; intergenerational equity; Euro; business research; economics. (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=29731 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijecbr:v:2:y:2010:i:1/2:p:87-111

Access Statistics for this article

More articles in International Journal of Economics and Business Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().