EconPapers    
Economics at your fingertips  
 

Compliance with fiscal rules in EU countries

Dodržování fiskálních pravidel v zemích EU

Pavel Morda

Český finanční a účetní časopis, 2021, vol. 2021, issue 1, 5-21

Abstract: The global financial crisis and the ensuing European debt crisis have exposed weaknesses in the structural fiscal stance of many European countries, where public debt has risen sharply over the past decade. At the same time, fiscal rules were reconsidered and adjusted, which did not consider the stabilizing function of fiscal policy important and allowed the governments of European countries to set pro-cyclical fiscal policies. Along with the implementation of new fiscal rules, politically independent national fiscal councils have also been established in the EU. An empirical analysis of compliance with fiscal rules in EU countries in 2002-2019 shows that only 55% of fiscal rules were complied with. At the same time, it seems that significant differences can be found between countries in terms of their tendency to comply with fiscal rules. The long-term negative consequences for fiscal policy were caused by the COVID-19 pandemic, which resulted in an average increase in debt relative to GDP of more than 10 percentage points.

Keywords: Fiscal rules; Fiscal councils; Fiscal policy; Fiskální pravidla; fiskální rady; fiskální politika (search for similar items in EconPapers)
JEL-codes: E62 H6 H87 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://cfuc.vse.cz/doi/10.18267/j.cfuc.552.html (text/html)
http://cfuc.vse.cz/doi/10.18267/j.cfuc.552.pdf (application/pdf)
free of charge

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:prg:jnlcfu:v:2021:y:2021:i:1:id:552:p:5-21

Ordering information: This journal article can be ordered from
Český finanční a účetní časopis, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://cfuc.vse.cz

DOI: 10.18267/j.cfuc.552

Access Statistics for this article

Český finanční a účetní časopis is currently edited by Karel Brůna

More articles in Český finanční a účetní časopis from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().

 
Page updated 2021-08-10
Handle: RePEc:prg:jnlcfu:v:2021:y:2021:i:1:id:552:p:5-21