IDEAS home Printed from
   My bibliography  Save this paper

Budgetary Consolidation in EMU


  • Jürgen von Hagen
  • Andrew Hughes Hallett
  • Rolf Strauch


There is a general consensus that monetary stability in Economic and Monetary Union (EMU) requires sustainable public finances of the member states. But how can a sufficient degree of budgetary discipline be maintained in Stage three of EMU?To answer this question, this study provides an empirical analysis of the budgetary consolidations in the EU member states by carrying out an analysis of: the importance of the quality of the budgetary adjustment for the success of the consolidations; the anatomy of fiscal adjustment processes in the EMU member states during the 1990s; the quality of the budgetary institutions of the member states and the changes in these institutions that have occurred during the 1990s; the macroeconomic aspects of fiscal consolidations. The results of the analysis support the proposition that, in order to maintain a high degree of sustainability in Stage three of EMU, attention might shift away from the numerical criteria regarding overall deficits and debts, and focus more on the quality of fiscal adjustments and of the institutions governing public finances in the member states.

Suggested Citation

  • Jürgen von Hagen & Andrew Hughes Hallett & Rolf Strauch, 2001. "Budgetary Consolidation in EMU," European Economy - Economic Papers 2008 - 2015 148, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  • Handle: RePEc:euf:ecopap:0148

    Download full text from publisher

    File URL:
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:euf:ecopap:0148. 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: (ECFIN INFO). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.