scholarly journals The Influence of Fiscal Rules on the Fiscal Stability in the EU Member States

2017 ◽  
Vol 8 (1) ◽  
pp. 212
Author(s):  
Ryta Iwona Dziemianowicz ◽  
Aneta Kargol-Wasiluk
Keyword(s):  
Fiscal Policy ◽  
Public Debt ◽  
Budget Deficit ◽  
National Level ◽  
Fiscal Rules ◽  
The European Union ◽  
Fiscal Discipline ◽  
Member States ◽  
Eu Member States ◽  
The Eu

Due to the rapid increase of the budget deficit and public debt in many the EU countries after 2008, fiscal policy has faced a significant challenge for developing an appropriate tools to strengthen fiscal discipline and thereby improve the quality of public finance. Institutional mechanisms such as among others numerical fiscal rules play an important role in maintaining the fiscal discipline and support fiscal credibility of the state. Fiscal rules are most often defined as permanent constraints on fiscal policy, expressed by indicators introducing a limit for a particular fiscal aggregate, such as a budget deficit (real or structural), public debt, public expenditure or public revenue. The theoretical objective of the article is to analyze the institutional dimension of numerical fiscal rules (their type, legal basis, transparency, complexity, flexibility, adequacy and coherence). The empirical purpose, on the other hand, is to conduct a statistical analysis and to examine the relationship between the value of the fiscal rules index and the level of budget deficit and public debt in 28 Member States of the European Union. Examining the effectiveness of applied fiscal rules, at both European and national level seems to be the most valuable part of the analysis.

scholarly journals General government deficit and public debt in EU member states

2011 ◽  
Vol 2 (4) ◽  
pp. 29-41
Author(s):  
Michał Wielechowski
Keyword(s):  
European Union ◽  
Public Debt ◽  
Budget Deficit ◽  
The European Union ◽  
Member States ◽  
Public Finances ◽  
Eu Member States ◽  
General Government ◽  
Government Deficit ◽  
The Eu

The aim of this article is the presentation and the attempt to analyse such phenomena as: an excessive general government deficit and public debt in EU Member States over the past 3 years. For the European Union the years 2008-2010 were the time when public finances of most member countries worsened dramatically. The average budget deficit in the EU increased during that period to a value of almost 7% compared to gross domestic product and public debt reached almost 80% of GDP. Referring the numbers to the principles of the budgetary policy in the Treaty on the European Union (the deficit should not exceed 3% in relation to GDP and public debt – 60% of GDP), the observance of budgetary discipline has been significantly violated. In consequence, the excessive deficit procedure has been initiated. in relation to almost all the countries of the EU, Its purpose was to force the member countries to take concrete actions to stabilize public finances. The economic crisis that began in the second half of 2007 in the United States of America which resulted in a significant deterioration of the finances of all the EU member countries might be regarded as the major source of violation of their budgetary discipline. The reactions of most governments TO the harmful effects caused by the financial crisis were to stimulate national economies and stem the decline of domestic demand. The higher level of public expenditures was simultaneously the cause of increased budget deficits,. To develop and present the problem of an excessive budget deficit and public debt in the EU countries some statistical methods were used and the data source statistics were mainly carried out by the European Commission and the European Statistical Office.

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.

scholarly journals AN ANALYSIS OF THE FISCAL CONVERGENCE CRITERIA IN THE EUROPEAN UNION IN TERMS OF THE SUSTAINABILITY

2013 ◽  
Author(s):  
Iulia Andreea Bucur ◽  
Simona Elena Dragomirescu
Keyword(s):  
Fiscal Policy ◽  
Euro Area ◽  
Public Debt ◽  
Budget Deficit ◽  
The European Union ◽  
Convergence Criteria ◽  
Eu Member States ◽  
Fiscal Management ◽  
Fiscal Balance ◽  
The Eu

Although the convergence criteria in the Maastricht Treaty led to the creation of the EMU and the euro area has resisted more than some of its critics believed, in the context of major macroeconomic imbalances, the issue of nominal convergence has been the subject of numerous research. This paper aims to analyze the capacity of fiscal criteria to reflect the ability of EU Member States to achieve economic development for the integration in the EMU and to comply strict fiscal policy that governing its operation. In the context of certain technical deficiencies of fiscal criteria, we analyzed the developments of budget deficit and gross public debt in the EU during 2000 and 2012. The results show that until 2007 the EU economies were able, overall, to meet the budget deficit criteria, but due to the financial crisis and the prolonged slowdown in economic growth, the fiscal balance had an unfavorable evolution since 2008, while the evolution of the gross public debt has worsened increasingly. Due to this pressure situation on the sustainability of public finances, examining the adoption, application and enforcement of the fiscal policy rules expressed by the evolution of the Fiscal Rule Index for the period 2000-2011, the importance of rules in the fiscal management of the Union and especially of the euro area appears increasingly obvious.

scholarly journals Are the EU Member States Ready for the New Union Customs Code: Emerging Legal Issues On the National Level

2017 ◽  
Vol 14 (1) ◽  
pp. 58-75
Author(s):  
Gediminas Valantiejus
Keyword(s):  
European Union ◽  
International Trade ◽  
National Level ◽  
The European Union ◽  
Member States ◽  
Eu Member States ◽  
Before And After ◽  
The Republic ◽  
The Eu

AbstractIn 2016, the European Union has launched a new and ambitious project for the future regulation of international trade in the European Union and the rules of its taxation: since the 1 May 2016, the new Union Customs Code (UCC) has entered into force. It revokes the old Community Customs Code (CCC), which was applied since 1992, and passed in the form of EU regulation sets brand-new rules for the application of Common Customs Tariff and calculation of customs duties (tariffs) in all the EU Member States. It is oriented to the creation of the paperless environment for the formalisation of international trade operations (full electronic declaration of customs procedures) and ensuring of a more uniform administration of customs duties in the tax and customs authorities of the Member States in the European Union. Therefore, the article raises and seeks to answer the problematic question whether the Member States of the European Union themselves are ready to implement these ambitious goals and does the actual practice of the Member States support that (considering the practice of the Republic of Lithuania). The research, which is based on the analysis of case law in the Republic of Lithuania (case study of recent tax disputes between the taxpayers and customs authorities that arose immediately before and after the entry into force of the UCC), leads to the conclusion that many problematic areas that may negatively impact the functioning of the new Customs Code remain and must be improved, including an adoption of new legislative solutions.

scholarly journals Europeanisation and German Public Administration

2021 ◽  
pp. 53-60
Author(s):  
Hans Hofmann
Keyword(s):  
Public Administration ◽  
National Level ◽  
The European Union ◽  
European Level ◽  
Member States ◽  
The Public ◽  
Eu Member States ◽  
Legal Remedy ◽  
Administrative Procedures ◽  
The Eu

AbstractThis chapter discusses how public administration in Germany is influenced by the making and implementation of law by the organs of the European Union (EU). Although the public administrations of the EU Member States are, in principle, responsible for enforcing the laws made by the EU, the EU’s influence on the public administration of Germany as EU Member State is constantly growing. This is true, not only of those areas in which the Member States have transferred to the EU the authority to make laws, but increasingly also of those areas in which the Member States have retained such authority. At the same time, however, there is no systematic codification of the law on administrative procedures at European level and no system of legal remedy for Union citizens equivalent to those at national level.

scholarly journals RISK-BASED APPROACH IN THE EUROPEAN UNION LEGISLATION TO PREVENT MONEY LAUNDERING AND FINANCING OF TERRORISM

2020 ◽  
pp. 43-52
Keyword(s):  
European Union ◽  
Money Laundering ◽  
National Level ◽  
Mitigation Measures ◽  
Specific Situation ◽  
The European Union ◽  
Member States ◽  
Financial Flows ◽  
Eu Member States ◽  
The Eu

Money laundering and terrorism financing are serious and internationally emerging issues that must be approached and confronted at European Union level. The latest terrorist attacks and periodic banking scandals highlight the necessity for additional attention in this particular direction. In regard to the internal EU market, financial flows are integrated and trans-border by nature, thus funds can circulate rapidly, from one country to another, offering the possibility to perpetrators and terrorists to transfer money across Member State avoiding detection by authorities. This specific situation generates the necessity to identify and understand the particular ML/TF risks generated by services and products offered within the EU economic and financial ecosystem. In order to ensure an efficient mechanism for identifying the ML/TF risks associated with the products and services provided on the territory of European Union, the 4AMLD provides the obligation of the EU Commission to perform once in two years the so-called European Union Money Laundering and Terrorist Financing Supranational Risk Assessment. Since 2017 two supra-national risk assessments were carried out and the final results are used by Member States to monitor the evolution of risks at Union level and to implement the necessary recommendation for ensuring a proper minimization of threats and vulnerabilities at the national level. This paper aims to analyze, understand and compare the main outcomes of the two assessments, namely the identified risks and their links with vulnerable sectors, as well as the evolution or devolution of certain risks as a result of mitigation measures applied by EU Member States. Another task of this article is to provide additional recommendations in terms of mitigating measures and efforts, which must be taken into account by Member States

scholarly journals Fiscal Rules and Effective Fiscal Policy

2012 ◽  
Vol 15 (2) ◽  
pp. 65-78 ◽  
Author(s):  
Joanna Działo
Keyword(s):  
Fiscal Policy ◽  
Public Debt ◽  
Government Spending ◽  
Budget Deficit ◽  
Fiscal Rules ◽  
Political Factors ◽  
Public Finances ◽  
The Eu ◽  
Macroeconomic Stability

This article examines and assesses the influence of political factors on the effectiveness of pursuing fiscal policy. These factors usually cause and maintain a high budget deficit and public debt. Moreover, the problems of influence of fiscal rules on increased effectiveness of the pursued fiscal policy have been discussed. The fiscal rules are to assure macroeconomic stability in economy and improve credibility of the pursued fiscal policy by reducing the deficit, government spending, and public debt. Examples of applicable fiscal rules in the EU and Poland are presented and an attempt is made to evaluate the effectiveness of these rules in the process of consolidation of public finances.

scholarly journals The European Union fiscal policy framework and fiscal sustainability: challenges for the post-crisis environment

2021 ◽  
Vol 33 (2) ◽  
pp. 67-82
Author(s):  
Urszula Kosterna
Keyword(s):  
European Union ◽  
Fiscal Policy ◽  
Reference Values ◽  
Public Debt ◽  
Policy Framework ◽  
Stability And Growth Pact ◽  
The European Union ◽  
Member States ◽  
Growth Pact ◽  
The Eu

The fiscal policy framework in the European Union was originally agreed upon in the Maastricht Treaty 30 years ago. In the following years it has been supplemented (Stability and Growth Pact) and modified, influenced by the experience of its application practice and external shocks, such as the financial crisis. However, the essence of this framework remained the same - member states are obliged to conduct a disciplined fiscal policy, which, in a nutshell, is assessed by comparing the ratio of budget deficit and public debt to GDP in a given country to the reference values. Even before the outbreak of the Covid-19 pandemic, the need to change the mechanisms for disciplining fiscal policy was widely recognized. High and persistent levels of public debt, pro-cyclicality of fiscal policy, shortage of public investment and the complexity of fiscal rules and their weak enforceability are indicated as unfavorable features of public finance. In 2019 the COVID-19 pandemic came as the biggest shock to the world community since World War II. In the context of the provisions on fiscal discipline, in May 2020 the Commission and the Council activated the general escape clause of Stability and Growth Pact, for the first time ever. This has allowed member states to take the necessary fiscal measures to deal with the crisis. On 19 October 2021, the European Commission adopted a Communication relaunching the public consultation, put on hold in March 2020, on the EU?s economic governance framework. The new governance framework should be tailored to the challenges the EU is facing, including the challenge of achieving a fiscal stance that is appropriate for the euro area as a whole.  There is a fairly widespread belief in the need to move away from rigid reference values, which should be replaced by solutions that ensure the sustainability of public debt in the differing circumstances of member states. The proposed options for the revision of the EU fiscal framework, although justified in theory, have a fundamental flaw - they strengthen the position of supranational institutions and, moreover, open the door to discretion and potentially unequal treatment of member states. These proposals can be seen in a broader context - the federalization of the EU, which would limit the sovereignty of nation states.

Implementation of the Principles of Good Governance on the National Level

2019 ◽  
pp. 185-199
Author(s):  
Henk Addink
Keyword(s):  
Good Governance ◽  
National Level ◽  
The European Union ◽  
Cultural Economic ◽  
Public Authorities ◽  
Member States ◽  
The Public ◽  
Eu Member States ◽  
The Eu ◽  
The Ideal

In ‘Good governance in the EU member states’ we investigated the interpretations and implementation of good governance and its principles in the EU member states, taking into account the different functions of government bodies. Good governance implementation is of growing importance on a national level in the fulfilment of public tasks by the public authorities, but also in relation to private institutions, when fulfilling tasks that are in the public interest. The common interest is related to a society’s underlying public values and it is directly linked to the concept of good governance. Good governance has a dual nature: the factual and the ideal. The factual dimension is represented by the realisation of good governance as an administrative fact and the ideal dimension in the element of conceptual (moral) correctness. Once conceptual correctness is acknowledged as a necessary element, the picture fundamentally changes: a non-positivist concept of good governance evolves. Good governance promotes cultural, economic, and social dynamics coherently within a society and in concrete situations. Good governance is the backbone of any modern European state. Also, some studies about good governance in states outside the European Union. Of course, there are important differences between and within continents; nevertheless, we can take a similar approach to other states in Africa, America and Australia. One of the new elements is also the attention to the issue of integrity in relation to the concept of good governance. We will present more clearly the concept of good governance in its concrete sense inside and outside Europe. We found good governance norms specified in legislation, policy documents, and decisions of courts and other controlling institutions like the ombudsmen and the courts of audit. A special point of attention is the link—in both theory and practice—between good governance and integrity.

scholarly journals WHEN THE EU HITS HOME: NATIONAL DETERMINANTS OF NON-COMPLIANCE WITH THE EUROPEAN UNION LAW

2021 ◽  
Vol 15 (2) ◽  
pp. 37-48
Author(s):  
Aleksei Sorbale ◽  
Keyword(s):  
European Union ◽  
Party System ◽  
Theoretical Perspective ◽  
National Level ◽  
The European Union ◽  
European Union Law ◽  
Member States ◽  
Eu Member States ◽  
Regional Strategies ◽  
The Eu

This study analyzes 25,516 cases of violation of the European Union law by 28 Member States from 1993 to 2018. I strive to outline the national level determinants of differentiation in the pool of member countries by the total number of the EU law violations. As a key method of analysis, logistic regression is used, where factors of GDP per capita (PPP), polarization of the parliament, fragmentation of the party system, regional strategies and quality of governance are used as country attributes. The analysis demonstrates that all country attributes are significantly related to all four quartiles of the outcome, which rank member states depending on the number of violations during the period under review: from the smallest share of violated directives (Q1) to the largest share of violated directives (Q4). The results of the study demonstrate the empirical relevance of the theoretical perspective of “worlds of compliance” formulated by G. Falkner et al. (2007) for the categorization of EU member states in their reactions to the compliance efforts of the EU.

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