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Design of fiscal frameworks and compliance with fiscal rules in CESEE

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  • Wolf Heinrich Reuter

    (Oesterreichische Nationalbank, Economic Studies Division)

Abstract

This paper analyzes the fiscal frameworks (i.e. the fiscal rules, fiscal councils and medium- term budgetary frameworks) in place in the 11 Central, Eastern and Southeastern European (CESEE) countries among the 28 EU Member States (EU-28). In recent years especially, these countries have significantly expanded and strengthened their fiscal frameworks, relying mostly on debt and expenditure rules with quite strong medium-term budgetary frameworks (MTBFs). The 11 CESEE EU countries adhered to their own fiscal rules in approximately 65% of the years between 1995 and 2015, mainly due to their very high compliance with debt and expenditure rules. While average compliance is currently higher in the CESEE EU countries than in the EU-28, it is actually decreasing over time, while increasing in the EU-28 sample.

Suggested Citation

  • Wolf Heinrich Reuter, 2016. "Design of fiscal frameworks and compliance with fiscal rules in CESEE," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 29-40.
    • Handle: RePEc:onb:oenbfi:y:2016:i:3:b:2
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    References listed on IDEAS

    as
    1. Reuter, Wolf Heinrich, 2019. "When and why do countries break their national fiscal rules?," European Journal of Political Economy, Elsevier, vol. 57(C), pages 125-141.
    2. Nerlich, Carolin & Reuter, Wolf Heinrich, 2015. "Fiscal rules, fiscal space and procyclical fiscal policy," Working Paper Series 1872, European Central Bank.
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    6. Iara, Anna & Wolff, Guntram B., 2014. "Rules and risk in the Euro area," European Journal of Political Economy, Elsevier, vol. 34(C), pages 222-236.
    7. Nerlich, Carolin & Reuter, Wolf Heinrich, 2013. "The design of national fiscal frameworks and their budgetary impact," Working Paper Series 1588, European Central Bank.
    8. Fatas, Antonio & Mihov, Ilian, 2006. "The macroeconomic effects of fiscal rules in the US states," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 101-117, January.
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    11. Reuter, Wolf Heinrich, 2015. "National numerical fiscal rules: Not complied with, but still effective?," European Journal of Political Economy, Elsevier, vol. 39(C), pages 67-81.
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    More about this item

    Keywords

    fiscal frameworks; compliance with fiscal rules; fiscal councils; medium-term budgetary framework;
    All these keywords.

    JEL classification:

    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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