DETERMINANTS OF FISCAL RULES IMPLEMENTATION – AN EU CASE STUDY

Mihaela Onofrei (), Florin-Alexandru Macsim () and Florin Oprea ()
Additional contact information
Mihaela Onofrei: Alexandru Ioan Cuza University of Iasi
Florin-Alexandru Macsim: Alexandru Ioan Cuza University of Iasi
Florin Oprea: Alexandru Ioan Cuza University of Iasi

Annals of Faculty of Economics, 2017, vol. 1, issue 1, 463-472

Abstract: This paper examines the implications of EU treaties, EU accession and other significant variables on the implementation of fiscal rules by EU states at a national level, sample period being years 1994-2015. The four targeted rules are the Budget Balance Rule, Public Debt Rule, Public Expenditure Rule and Public Revenue Rule for general or central governments. Two were our established key hypothesis: first, the fact that EU treaties enhance fiscal discipline at a national level, and second, the fact that the fiscal integration process determined in this particular case by EU accession and the two Maastricht treaty rules has a positive impact too. Both variables exert a positive influence on the implementation of fiscal rules at a national level by EU member states. While levels of public revenues as ratio-to-GDP exert a positive influence on the implementation of the related rules, it also has a negative impact on the implementation of the expenditure rule. Enhancing fiscal discipline through external factors is not necessarily the best method, as it may not correlate with internal structures and aggregates. Nevertheless, our results indicate that treaties and the integration process do bring with themselves fiscal rules that enhance fiscal discipline, fiscal framework, and conduct to more solid public finances.

Keywords: fiscal integration; fiscal discipline; fiscal rules; European Union (search for similar items in EconPapers)
JEL-codes: E61 E62 H60 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://anale.steconomiceuoradea.ro/volume/2017/n1/45.pdf (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:ora:journl:v:1:y:2017:i:1:p:463-472

Access Statistics for this article

More articles in Annals of Faculty of Economics from University of Oradea, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Catalin ZMOLE ( this e-mail address is bad, please contact ).