IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

The Efficiency of the Fiscal Policy in the EU and Its Role in the Economic Recovery by Attracting FDIs

  • Magdalena RĂDULESCU


    (Faculty of Economic Sciences, University of Pitesti, Pitesti, Romania)

Registered author(s):

    The deep global recession has focused attention on the need for countercyclical macroeconomic policies. The scope for monetary policy was hampered by the credit freeze in the financial system, which was constrained by the accumulation of toxic assets awaiting a resolution to restore confidence and efficient intermediation. While a heated debate has emerged on the specifics, the need for fiscal intervention to support demand proved to be larger and of longer duration than initially envisaged. Further, there is a need to consider lags governing the fiscal policy transmission to decide on the speed of fiscal withdrawal without jeopardizing the recovery efforts. The aim of this paper is to establish some important factors for fiscal policy effectiveness and their role in attracting FDIs in the EU countries for sustaining economic recovery here based on literature review and the EU countries’ experience. Even if the tax regime is not the only factor that determines decisions for foreign investments, reducing tax rates in some new Member States has increased the attractiveness of these countries for foreign investors.

    If 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.

    File URL:
    Download Restriction: no

    Article provided by in its journal Journal of Knowledge Management, Economics and Information Technology.

    Volume (Year): 1 (2011)
    Issue (Month): 7 (December)
    Pages: 23

    in new window

    Handle: RePEc:spp:jkmeit:1224
    Contact details of provider: Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:spp:jkmeit:1224. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adrian Ghencea)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.