scholarly journals Financial Crisis and Fiscal Policy: An Assessment of the EU-Member Balkan States

2014 ◽  
Author(s):  
Servet Akyol
Keyword(s):  
Public Sector ◽  
Fiscal Policy ◽  
Public Debt ◽  
Financial Sector ◽  
Fiscal Policies ◽  
Economic Activities ◽  
Public Deficit ◽  
Debt Burden ◽  
Balkan States ◽  
The Eu

The objective of this paper is to study the economic and social results of the post-crisis fiscal policies concerning the Balkan States that are members of the EU. The global crisis, which broke out in the US in 2008, had a deep effect on both developed and developing countries. Until today different policies have been put on the agenda in order to eliminate or alleviate the impacts of the crisis. In this context, bailout and stimulus packages were firstly implemented. Stimulus packages were replaced by austerity policies because of the increasing public debt and budget deficit after 2010. Fiscal policy focused on reducing the debts instead of supporting the economic activities. This study is based on historical and descriptive method. It examines the development of post-crisis fiscal policies in the Balkan States that are members of the EU. In this study, public expenditure, public debt, public deficit and unemployment rate are used as the main indicators. The effects of fiscal policy will be compared between countries. This study also suggests that although the crisis resulted from financial sector, burden of crisis was transferred to public sector. Moreover, in many countries, because of its increasing deficit and debt burden, public sector became depended on financial sector that was rescued before. After the crisis, fiscal policies has led to significant economic and social costs in the Balkan States that are members of the EU.

scholarly journals Changes in the fiscal policy of EU states after the 2008 crisis

2019 ◽  
Vol 55 (1) ◽  
pp. 52-65 ◽  
Author(s):  
Witold Wiliński
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
European Parliament ◽  
Steady Increase ◽  
Fiscal Policies ◽  
National Debt ◽  
Eu Countries ◽  
Fiscal Compact ◽  
The Eu ◽  
Debt Levels

Abstract The aim of this article is an extensive presentation of the fiscal policy conducted by the EU states in the years 2008–2015. The analysis concerns the legal regulations introduced at the EU level by the European Parliament and the Council, as well as the fiscal policies of governments of particular states. The first part of the article analyzes basic macroeconomic data in EU states concerning the level of debt, the level of gross domestic product (GDP) redistribution, and the level of economic growth in the analyzed period. The second part discusses the legal acts adopted by the European Parliament and the Council (the so-called ‘sixpack’ and the European Fiscal Compact), aimed at improving macroeconomic balance and ensuring supervision over the proper functioning of national finances. The third part analyzes the discretionary fiscal policies pursued in EU states. The main conclusions of this article are as follows: (i) EU countries recorded higher national debt levels and debt growth rates between 2008 and 2015 than most non-EU Organisation for Economic Co-operation and Development (OECD) countries; (ii) despite legal measures taken by the European Council and the European Commission in the form of the sixpack and the European Fiscal Compact, and despite discretionary fiscal measures such as in the form of the European Economic Recovery Plan, five EU countries (Cyprus, Greece, Italy, Portugal, and Spain) have experienced a steady increase in their national debt levels; and (iii) deep reforms in the composition and level of government expenditure are a prerequisite for reducing national debt levels and for achieving satisfactory economic growth in these countries.

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.

CRIME AND FISCAL POLICY IN EUROPE: THE EFFECT OF SHADOW ECONOMY

2020 ◽  
Vol 20 (03) ◽  
pp. 2050017
Author(s):  
ELEFTHERIOS GOULAS ◽  
SOCRATES KARIDIS
Keyword(s):  
Fiscal Policy ◽  
Violent Crime ◽  
Shadow Economy ◽  
Criminal Activity ◽  
Crime Rates ◽  
Fiscal Policies ◽  
Economic Activities ◽  
Mitigating Factor ◽  
Positive Effect

We empirically investigate the role of fiscal policies on criminal activity using a sample of 25 EU countries over the period 2000–2013. Our analysis indicates that tight fiscal policies appear to have a positive effect on crime. This effect becomes stronger when property (non-violent) crime rates are considered. Further, the presence of high levels of shadow economy in a country provides a very strong mitigating factor on the adverse effect of public policies on crime. The initially strong link between tight fiscal policy and non-violent crime weakens significantly in the presence of undocumented economic activities which compensate for the lack of formal economic opportunities.

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 Fiscal policy, public sector management and the 1989 health sector strike

1970 ◽  
Vol 14 (3) ◽  
Author(s):  
Pat Walsh ◽  
Geoff Fougere
Keyword(s):  
Public Sector ◽  
Fiscal Policy ◽  
Health Sector ◽  
Political Environment ◽  
Fiscal Policies ◽  
Combined Effects ◽  
New Approach ◽  
Industrial Environment ◽  
Public Sector Management

This paper argues that the 1989 health sector strike grew out of the combined effects of the Labour Government's fiscal policies and its new approach to public sector management. These policies gave rise to a new and not well understood political and industrial environment which held unexpected hazards for all parties. The course and outcomes of the dispute were not under the control of any party, all of whom learnt, as they went along, what the new industrial and political environment held for them.

A Discussion on Fiscal Policies Implemented in EU During and After the Great Recession

2019 ◽  
pp. 143-159
Author(s):  
Gozde Es Polat ◽  
Onur Polat
Keyword(s):  
Fiscal Policy ◽  
Financial Crisis ◽  
Policy Implementation ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Fiscal Policies ◽  
The Great Recession ◽  
Eu Member States ◽  
The Global Financial Crisis ◽  
The Eu

Along with the global financial crisis that took place in 2008, the ineffectiveness of other policies used for exiting from the crisis has brought back the feasibility of fiscal policy as an alternative. It is accepted that the only way to overcome the severe shrinking of the total demand during the 2008 global financial crisis is expansionary fiscal policy applied globally. However, differences in the subjective conditions of the EU member countries in particular have not made it possible to implement an expansionary fiscal policy for all of the member countries. More developed EU countries have begun to carry out from expansionary fiscal policies, while the less developed ones have begun to conduct contractionary fiscal policies. With the awareness that the financial stability is a public good, the obstacles, challenges on the global fiscal policy implementation by the EU member states are discussed by examining fiscal policies performed during and after the 2008 global financial crisis.

scholarly journals Analysis of Fiscal Rules in the European Monetary Union

2015 ◽  
Vol 4 (1) ◽  
pp. 19-33 ◽  
Author(s):  
Damir Šehović
Keyword(s):  
Fiscal Policy ◽  
Policy Coordination ◽  
Fiscal Rules ◽  
Fiscal Policies ◽  
Convergence Criteria ◽  
Member States ◽  
Growth Pact ◽  
Fiscal System ◽  
The Stability ◽  
The Eu

Abstract : The EMU fiscal system is specific in many areas compared to other classic fiscal systems of national states. Specific features mainly reflect in the implementation of economic policy within the EMU which is carried out by combining a common centralized monetary policy under the ECB jurisdiction and decentralized fiscal policies under the jurisdiction of the member states. The member states` sovereignty in governing their fiscal policies is one of the key causes of the EU fiscal system underdevelopment, i.e. its indigent structure in relation to “standard fiscal systems”. More indigent structure of the EU fiscal system is reflected in the fact that it consists of only three segments. The first one refers to the EU budget which is also the only instrument for implementing fiscal policy at the supranational level. The second one refers to the harmonization of taxation systems in accordance with inputs and other legislation adopted at the EU level with the aim of fostering the single internal market. Finally, the third segment refers to the fiscal policy coordination of the EMU member states related to appropriate fiscal rules, which mainly stem from the Maastricht convergence criteria and the Stability and Growth Pact.

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.

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