Fiscal rules versus fiscal stability in European Union Cover Image

Reguły fiskalne a stabilność fiskalna krajów Unii Europejskiej
Fiscal rules versus fiscal stability in European Union

Author(s): Lech Próchnicki
Subject(s): Economy
Published by: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego
Keywords: European Union; fiscal stability; fiscal rules; public debt; budget deficit

Summary/Abstract: In European Union countries, fiscal policy is governed and guided by national and EU rules. Although, their goal is to ensure fiscal stability, however national interests, the financial crisis and economic downturn caused that the rules were washed away or even temporarily suspended. Discretionary decision return again to fiscal policy and its the final effect was a rapid and significant increase in the deficit and debt. They have reached a level which began to threaten the functioning of the euro area. This way policy makers realized the need to review and improve the already existing fiscal rules in such a way that eliminates the discretionary, and at the same time the system ensured the safety of fiscal rules and do not obstruct the fight against the crisis. In most EU countries, it is time to significantly reduce the structural deficit what unavoidable will lead to reduction of the scope of the welfare state

  • Issue Year: 2013
  • Issue No: 32/1
  • Page Range: 27-50
  • Page Count: 24
  • Language: Polish