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Doubtful Sustainability of Public Finances in Slovenia

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  • Primož Dolenc
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    Abstract

    In the immediate period before adoption of euro many debates in Slovenia deal with fulfillment of Maastricht criteria. Slovenia has never had any significant problems with Maastricht fiscal criteria, but this does not mean that it has long-term sustainable fiscal situation. The purpose of this analysis is analyze (non)sustainability of Slovenia's fiscal stance. The methodology is based on objective analysis of long-term public finance's stability/sustainability. The analysis shows that Slovenia exceeded several times the level of sustainability in previous years. In next period the circumstances could only worsen unless necessary fiscal reform and other policy measures (especially reform of public-debt management) are introduced.

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    Bibliographic Info

    Article provided by University of Economics, Prague in its journal Prague Economic Papers.

    Volume (Year): 2006 (2006)
    Issue (Month): 3 ()
    Pages: 268-281

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    Handle: RePEc:prg:jnlpep:v:2006:y:2006:i:3:id:288:p:268-281

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    Related research

    Keywords: sustainability; public finance; deficit; debt; budget;

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    1. Friedrich Heinemann, 1993. "Sustainability of national debt in Europe," Intereconomics: Review of European Economic Policy, Springer, vol. 28(2), pages 61-68, March.
    2. de Haan, Jakob & Siermann, Clemens L J, 1993. "The Intertemporal Government Budget Constraint: An Application for the Netherlands," Public Finance = Finances publiques, , vol. 48(2), pages 243-49.
    3. Barry Eichengreen & Charles Wyplosz, 1998. "The Stability Pact: more than a minor nuisance?," Economic Policy, CEPR & CES & MSH, vol. 13(26), pages 65-113, 04.
    4. Uctum, Merih & Wickens, Michael, 2000. " Debt and Deficit Ceilings, and Sustainability of Fiscal Policies: An Intertemporal Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(2), pages 197-222, May.
    5. Antonio Fat·s & Ilian Mihov, 2003. "On Constraining Fiscal Policy Discretion in EMU," Oxford Review of Economic Policy, Oxford University Press, vol. 19(1), pages 112-131.
    6. Bennett T. McCallum, 1982. "Are Bond-Financed Deficits Inflationary? A Ricardian Analysis," NBER Working Papers 0905, National Bureau of Economic Research, Inc.
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