National Independent Fiscal Institutions Need to Be Stronger to Perform Effectively

Daianu Daniel
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Daianu Daniel: Romanian Fiscal Council, Bucharest, Romania

Intereconomics: Review of European Economic Policy, 2024, vol. 59, issue 2, 112-118

Abstract: In April 2023, the European Commission issued a directive proposal on EU economic governance reform. The Council cut some tasks of Independent Fiscal Institutions (IFIs) that were in the Commission directive proposal; whether this cutting is justified is an open question. Early this year, the Council and the Parliament reached a provisional agreement on the proposed reform of the EU economic governance framework. The vision of the Commission that would involve IFIs in the assessment of fiscal-structural plans is not groundless. But structural reforms and investment analysis demand expertise that hardly exists in most national IFIs, and their involvement in policy design could be perceived as a technocratic inroad into democratic decision-making. In order to play a more significant and effective role, national IFIs need adequate resources and enhanced analytical capacity; their activity depends heavily on the policy design of the EU economic governance. National IFIs should view their role from a macroprudential perspective, too. The role of IFIs should not go beyond what most of them can deliver effectively, so that their status and reputation are not harmed.

JEL-codes: E62 F15 H61 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:intere:v:59:y:2024:i:2:p:112-118:n:12

DOI: 10.2478/ie-2024-0023

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