The challenges to long run fiscal sustainability in Romania
AbstractRomania, along with many other countries in the European Union, faces daunting fiscal challenges. Fiscal balances deteriorated sharply following the global economic crisis, forcing Romania to implement a fiscal consolidation that was one of the largest in the European Union, but which may not be sustainable without a recovery of economic growth. Although the ratio of public debt to gross domestic product is still relatively modest, at around 35 percent, long-term fiscal solvency is threatened by the costs of funding the public pension system in the face of adverse demographic shifts over the next 50 years. Because of widespread tax evasion, the tax system in Romania is one of the least efficient in the European Union. Tax reforms that can reduce the amount of tax lost to evasion and fraud could make a major contribution to enhancing fiscal sustainability.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 5927.
Date of creation: 01 Jan 2012
Date of revision:
Debt Markets; Public Sector Expenditure Policy; Emerging Markets; Public Sector Economics; Fiscal Adjustment;
This paper has been announced in the following NEP Reports:
- NEP-ACC-2012-01-10 (Accounting & Auditing)
- NEP-ALL-2012-01-10 (All new papers)
- NEP-EEC-2012-01-10 (European Economics)
- NEP-IUE-2012-01-10 (Informal & Underground Economics)
- NEP-PBE-2012-01-10 (Public Economics)
- NEP-TRA-2012-01-10 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Luca Barbone, 2011. "The Battle Over Private Pensions," CASE Network E-briefs 05, CASE-Center for Social and Economic Research.
- Carlos Díaz Alvarado & Alejandro Izquierdo & Ugo Panizza, 2004.
"Fiscal Sustainability in Emerging Market Countries with an Application to Ecuador,"
6681, Inter-American Development Bank.
- Carlos Díaz Alvarado & Alejandro Izquierdo & Ugo Panizza, 2004. "Fiscal Sustainability in Emerging Market Countries with an Application to Ecuador," Research Department Publications 4371, Inter-American Development Bank, Research Department.
- European Commission DG Taxation and Customs Union, 2009. "Taxes in Europe Database," Taxes in Europe Database 0001, Directorate General Taxation and Customs Union, European Commission, revised Jun 2012.
- World Bank, 2013. "Reviving Romania's Growth and Convergence Challenges and Opportunities : A Country Economic Memorandum," World Bank Other Operational Studies 16036, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.