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An Empirical Analysis Of The Potential Effects Induced By The Implementation Of The Medium-Term Budgetary Objective In The Countries Of The European Union

Author

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  • Ionel LEONIDA

    (“Victor Slavescu” Centre for Financial and Monetary Research, Bucharest, Romania)

Abstract

In this paper, an analysis will be carried out, which aims to identify potential effects induced by the implementation of the mechanism on the medium-term budgetary objective on the evolution of public finances in Member States that record public debts of over 90% of gross domestic product, but also on Romania. The indicators whose developments will be presented and analyzed are: economic growth; the level of the public debt, the budget deficit (conventional) and the structural balance. The research method used in the paper emphasizes the empirical analysis, by identifying and presenting the possible effects induced by the implementation of the medium-term budgetary objective mechanism on some fiscal-budgetary indicators. The obtained results can be constituted in arguments of efficiency or ineffectiveness of the mechanism of the medium- term budgetary objective.

Suggested Citation

  • Ionel LEONIDA, 2020. "An Empirical Analysis Of The Potential Effects Induced By The Implementation Of The Medium-Term Budgetary Objective In The Countries Of The European Union," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 5(4), pages 75-85.
    • Handle: RePEc:brc:brccej:v:5:y:2020:i:4:p:75-85
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    References listed on IDEAS

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    1. European Fiscal Board (EFB), 2019. "Assessment of EU fiscal rules with a focus on the six and two-pack legislation," Reports 2019, European Fiscal Board.
    2. Zsolt Darvas & Grégory Claeys & Alvaro Leandro, 2016. "A proposal to revive the European Fiscal Framework," Bruegel Policy Contributions 13490, Bruegel.
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    Keywords

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    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H69 - Public Economics - - National Budget, Deficit, and Debt - - - Other

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