scholarly journals Impact of fiscal institutions on public finances in the European Union: Review of evidence in the empirical literature

2021 ◽  
Vol 21 (2) ◽  
pp. 215-232
Author(s):  
Martin Gorčák ◽  
Stanislav Šaroch
Keyword(s):  
European Union ◽  
Fiscal Policy ◽  
Policy Making ◽  
Fiscal Rules ◽  
Empirical Literature ◽  
The European Union ◽  
Fiscal Institutions ◽  
Public Finances ◽  
The Eu ◽  
Fiscal Outcomes

Abstract This paper examines the impact of budgetary institutions on public finances in the European Union on the basis of a critical survey of the relevant theoretical and empirical literature. In general, the authors find that fiscal institutions (namely fiscal rules) have successfully contributed to greater fiscal sustainability, reduced procyclicality of fiscal policies within the EU, and increased national ownership of fiscal rules by strengthening national fiscal frameworks. A fiscal reaction function was one of the widely used methods to determine the principal variables affecting fiscal outcomes. Some authors used cyclically-adjusted fiscal outcomes as the dependent variable representing the discretionary fiscal policy-making whereas others put emphasis on other fiscal outcomes. The samples of countries covered mostly the EU Member States, representing rather homogenous samples in the context of common EU fiscal framework. Institutional aspects used as independent variables differed significantly among authors and some could be added for future research. Based on the literature survey, several recommendations were made for fiscal policy-making.

scholarly journals Fiscal councils as an element of the concept of fiscal governance in the European Union member states

Equilibrium ◽  
2016 ◽  
Vol 11 (4) ◽  
pp. 675
Author(s):  
Ryta Dziemianowicz ◽  
Aneta Kargol-Wasiluk ◽  
Renata Budlewska
Keyword(s):  
Fiscal Policy ◽  
Good Governance ◽  
Fiscal Rules ◽  
The European Union ◽  
Member States ◽  
Public Finances ◽  
Eu Countries ◽  
Eu Member States ◽  
Fiscal Balance ◽  
The Eu

Fiscal governance is defined as a combination of institutions, rules and norms that structure good governance in the area of fiscal policy. It can be named as the specific mechanism of coordination by using of tools such as: budgetary procedures (legislative fiscal rules), fiscal rules (numerical) and independent fiscal institutions/ fiscal councils. Fiscal governance focuses on how the fiscal policy is planned, approved, conducted and monitored, including the involvement of not only public bodies, but the business sector and civil society too. In this study, particular attention was paid to capturing the essence of the relationship between the qualitative elements of fiscal councils activity and its impact on stabilizing the public finances in the view of fiscal governance concept. During the last world crisis in the EU countries, an interest in establishing fiscal councils has increased. Before 2008 there were only seven institutions in the EU, while in 2014 there are already 19. The question is - are these institutions efficient in stabilizing public finances? Therefore, the main objective of the article is the assessment of the role of the fiscal councils in the coordination of the fiscal policy in the EU Member States. The conducted analysis verifies this role on the basis of theoretical deliberation of the current state of the art. The empirical research verifies fiscal councils’ dependence on fiscal balance of EU countries. Research was conducted on the basis of the European Commission, Eurostat and International Monetary Fund data sets.

EUROPEAN FISCAL RULES AS A LIABILITY IN THE TRANSATLANTIC TRADE CONFLICT: LESSONS FROM NiGEM SIMULATIONS

2020 ◽  
Vol 254 ◽  
pp. R54-R66 ◽  
Author(s):  
Sebastian Dullien ◽  
Sabine Stephan ◽  
Thomas Theobald
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Fiscal Policy ◽  
Fiscal Rules ◽  
The European Union ◽  
Negative Effects ◽  
Transatlantic Trade ◽  
The Us ◽  
Trump Administration

Under the Trump administration, a transatlantic trade conflict has been escalating step by step. First, it was about tariffs on steel and aluminium, then about retaliation for the French digital tax, which is suspended until the end of the year. Most recently, the US administration threatened the European Union with tariffs on cars and car parts because of Canadian seafood being subject to lower import duties. As simulations with NiGEM show, a further escalation of the transatlantic trade conflict has the potential to slow down economic growth significantly in the countries involved. This is a considerable risk given the fact that the countries have to cope with the enormous negative effects of the pandemic shock. Furthermore, the damage caused by the trade conflict depends on the extent to which the affected countries use fiscal policy to stabilise their economies.

scholarly journals National fiscal frameworks in the post-crisis European Union

Equilibrium ◽  
2018 ◽  
Vol 13 (4) ◽  
pp. 623-642
Author(s):  
Agata Szymańska
Keyword(s):  
Public Finance ◽  
European Union ◽  
Value Added ◽  
Fiscal Rules ◽  
Agglomerative Clustering ◽  
Clustering Method ◽  
Public Finances ◽  
Eu Countries ◽  
The Eu ◽  
Fiscal Frameworks

Research background: The latest economic and financial crisis has seriously injured European Union Member States, affecting the condition of their public finances. In the face of the crisis, the EU made a special effort to increase the effectiveness of national fiscal frameworks, e.g. by improving the compliance with legislation. The post 2009 reforms were aimed at providing a solid economic foundation for the national fiscal frameworks, especially in the high-debt euro area countries. Purpose of the article: The goal of this research is twofold. Firstly, it aims to provide an outline of the national fiscal governance in the EU. Secondly, the paper analyzes the changes in the core measures of fiscal governance in the EU between the crisis period and the year 2016 (due to the latest available data) and investigates the similarities in the progress made by the 28 EU countries in restoring balance in public finance. Methods: To achieve the goal, the literature review and the analysis of core elements of national fiscal frameworks are provided. In the empirical section the grouping method for all 28 EU countries based on the Ward's agglomerative hierarchical clustering method is employed. The study uses data derived from the AMECO database (in the case of fiscal data) and the European Commission thematic data for quality indexes of particular elements of fiscal governance (numerical fiscal rules, medium-term budgetary frameworks and independent fiscal institutions). Findings & Value added: This paper contributes to the literature by, on the one hand, attempting to analyze changes in main fiscal governance measures and, on the other hand, by assessing their link with public finance through employment of the agglomerative clustering method. Based on the results, the conclusion about the importance of the improvement in fiscal frameworks is provided. The analysis shows that countries with better national fiscal framework achieved better results in public finances regardless the macroeconomic conditions.

scholarly journals THE INFLUENCE OF THE INTEGRATION IN THE EUROPEAN UNION ON THE ROMANIAN FISCAL LEGISLATION

2008 ◽  
pp. 56
Author(s):  
Mircea Muntean ◽  
Doina Pacurari
Keyword(s):  
European Union ◽  
Fiscal Policy ◽  
Negative Impact ◽  
Value Added ◽  
The European Union ◽  
European Directives ◽  
Eu Directives ◽  
Dividend Tax ◽  
Excise Duties ◽  
The Eu

Fiscal policy constitutes – within the state's economic policy – a system by means of which the taxes and duties owed to the country's consolidated budget are established and collected. Taking into account the role fiscal policy has been playing since Romania's admission in the European Union, one of the goals ceaselessly looked for is its adapting to the international community's acquis through the implementation of the European directives in our context. The EU directives make reference to direct taxes: dividend tax, interest income tax, assets transfer, shares exchange, income taxation for the non-residents, and so on, along with the indirect taxes: value-added tax, excise duties, etc. The paper approaches the main provisions within the contents of the European directives as well as the means of their implementation in the Romanian fiscal legislation regarding various types of taxes. The implementation of the European directives has been simultaneous with the establishing of measures concerning fiscal fraud prevention, frauds liable to have a negative impact on the state's consolidated budget.

Policy-Making in the European Union

2020 ◽  
Keyword(s):  
European Union ◽  
Policy Making ◽  
National Level ◽  
The European Union ◽  
Eu Policy ◽  
Theoretical Approaches ◽  
Wide Range ◽  
The Common ◽  
Key Events ◽  
The Eu

Policy-Making in the European Union explores the link between the modes and mechanisms of EU policy-making and its implementation at the national level. From defining the processes, institutions and modes through which policy-making operates, the text moves on to situate individual policies within these modes, detail their content, and analyse how they are implemented, navigating policy in all its complexities. The first part of the text examines processes, institutions, and the theoretical and analytical underpinnings of policy-making, while the second part considers a wide range of policy areas, from economics to the environment, and security to the single market. Throughout the text, theoretical approaches sit side by side with the reality of key events in the EU, including enlargement, the ratification of the Treaty of Lisbon, and the financial crisis and resulting Eurozone crisis, focusing on what determines how policies are made and implemented. This includes major developments such as the establishment of the European Stability Mechanism, the reform of the common agricultural policy, and new initiatives to promote EU energy security. In the final part, the chapters consider trends in EU policy-making and the challenges facing the EU.

13. Environmental Policy

2020 ◽  
pp. 297-320
Author(s):  
Andrea Lenschow
Keyword(s):  
European Union ◽  
Environmental Policy ◽  
Interest Groups ◽  
Policy Making ◽  
Policy Coordination ◽  
Historical Evolution ◽  
The European Union ◽  
Policy Makers ◽  
Environmental Interest Groups ◽  
The Eu

This chapter focuses on the European Union’s environmental policy, the development of which was characterized by institutional deepening and the substantial expansion of environmental issues covered by EU decisions and regulations. Environmental policy presents a host of challenges for policy-makers, including the choice of appropriate instruments, improvement of implementation performance, and better policy coordination at all levels of policy-making. The chapter points to the continuing adaptations that have been made in these areas. It first considers the historical evolution of environmental policy in the EU before discussing the main actors in EU environmental policy-making, namely: the European Commission, the Council of the European Union, the European Parliament, the Court of Justice of the European Union, and environmental interest groups. The chapter also looks at the EU as an international actor.

14. Policy-making in the European Union

2016 ◽  
Author(s):  
Ralf Drachenberg ◽  
Alex Brianson
Keyword(s):  
European Union ◽  
Policy Making ◽  
Best Practice ◽  
The European Union ◽  
New Governance ◽  
Policy Decisions ◽  
State Action ◽  
Eu Policy ◽  
Governance Tools ◽  
The Eu

This chapter examines the process of policy-making in the European Union. It first considers how the EU originally made policy decisions before tracing the evolution of the formal balance between the EU institutions over time, with particular emphasis on the increasing legislative power of the European Parliament. It then describes the Community method, which remains the core of the EU policy process but is now complemented with a range of ‘new governance tools’ designed to produce coordinated member state action through iterated processes of standard-setting, best practice identification, and knowledge transfer. One of these processes is the open method of coordination (OMC). The chapter concludes with an analysis of the implementation of EU policy decisions by and in the member states, along with current trends in EU decision-making after the EU enlargements of the 2000s and the ratification of the Lisbon Treaty.

scholarly journals Spatializing authoritarian neoliberalism by way of cultural politics: City, nation and the European Union in Gdańsk’s politics of cultural policy formation

2020 ◽  
pp. 239965442096523
Author(s):  
Thomas Borén ◽  
Patrycja Grzyś ◽  
Craig Young
Keyword(s):  
European Union ◽  
Political Economy ◽  
Cultural Policy ◽  
Policy Making ◽  
National Level ◽  
Policy Research ◽  
Policy Formation ◽  
The European Union ◽  
Policy Mobilities ◽  
The Eu

This paper develops perspectives which seek to spatialize authoritarian neoliberalism through arguing for greater engagement with the politics of urban cultural policy formation in the neglected context of post-socialist East and Central Europe. Through analyzing the politics of urban cultural policy-making in Gdańsk, Poland, the paper spatializes authoritarian neoliberalism by exploring how relations between the urban and the national, and between the urban and the supranational, shape urban cultural policy, drawing upon literatures on political economy, policy mobilities, cultural policy research, and the concepts of authoritarian neoliberalism and the relational-territorial nexus. Gdańsk is a liberally run city, strongly aligned with the European Union (EU), opposed to the authoritarian neoliberal national level politics in Poland. The paper analyses urban-national tensions and relationships between Gdańsk and the EU to unpack the contested spatial nature of authoritarian neoliberalism.

13. Environmental Policy Contending Dynamics of Policy Change

2017 ◽  
Author(s):  
Andrea Lenschow
Keyword(s):  
European Union ◽  
Environmental Policy ◽  
Policy Making ◽  
Environmental Issues ◽  
Policy Coordination ◽  
The European Union ◽  
Court Of Justice ◽  
Environmental Interest Groups ◽  
The Eu ◽  
Made In

This chapter focuses on the European Union’s environmental policy, the development of which was characterized by institutional deepening and the substantial expansion of environmental issues covered by EU decisions and regulations. Environmental policy presents a host of challenges for policymakers, including the choice of appropriate instruments, improvement of implementation performance, and better policy coordination at all levels of policy-making. The chapter points to the continuing adaptations that have been made in these areas. It first considers the historical evolution of environmental policy in the EU before discussing the main actors in EU environmental policy-making, namely: the European Commission, the Council of the European Union, the European Parliament, the Court of Justice of the European Union, and environmental interest groups. The chapter also looks at the EU as an international actor.

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