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Fiscal aspects of accession: can we anter the European Union with a budgetary deficit?

In: Croatian Accession to the European Union: Institutional Challenges

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Author Info

  • Judita Cuculic

    (International Monetary Fund, Zagreb)

  • Michael Faulend

    (Croatian Natrional Bank, Zagreb)

  • Vedran Sosic

    (Croatian Natrional Bank, Zagreb)

Registered author(s):

    Abstract

    Although there is no common fiscal policy at the European Union (EU) level in Croatia, accession will entail important changes in budgetary revenue and expenditure. On the one hand, accession brings transfers from the EU budget, but also means the loss of customs revenue as well as the need to adjust the structure of tax revenue. On the other hand, in conjunction with significant expenditure for adjustment in areas such as transportation and the environment, as well as expenditures for the EU budget, there will be a change in the structure of expenditure,in order to be able to check on transfers from the Structural Funds. The objective of this paper is to evaluate the intensity and direction of fiscal effects that accession will lead to, as well as the changes in their structure and the possibility of meeting the convergence criteria.

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    File URL: http://www.ijf.hr/eng/EU2/cuculic-faulend-sosic.pdf
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    Bibliographic Info

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    This chapter was published in:

  • Katarina Ott (ed.), 2004. "Croatian Accession to the European Union: Institutional Challenges," Books on Croatian accession to the European Union, Institute of Public Finance, volume 2, number 2, January.
    This item is provided by Institute of Public Finance in its series Chapters in books with number 2-03.

    Handle: RePEc:ipf:chaptr:2-03

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    Related research

    Keywords: fiscal policy of Croatia; structural funds of the European Union; harmonisation of tax legislation; convergence criteria;

    References

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    1. Catherine Mathieu & Henri Sterdyniak, 2003. "Reforming the Stability and Growth Pact: Breaking the Ice," Sciences Po publications 2003-02, Sciences Po.
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    Cited by:
    1. Katarina Ott, 2005. "Croatia and the European Union: accession as transformation," Chapters in books, in: Katarina Ott (ed.), Croatian Accession to the European Union: Facing the Challenges of Negotiations, volume 3, chapter 1, pages 1-29 Institute of Public Finance.

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