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Reforming Government Subsidies in the New Member States of the European Union

  • Alex Segura-Ubiergo
  • Taline Koranchelian
  • Carlos Mulas-Granados

Subsidy reform has been a key component of the pre-accession reform agenda of the 10 new member states that joined the EU in 2004 (EU-10). During the pre-accession period, these countries had to undertake a number of important structural reforms in their economies. One of the most critical reforms was to reduce, and in some cases, eliminate their subsidy programs. This paper analyzes how key subsidy reforms (in state aid to enterprises, agriculture, energy, and transportation) were carried out in the EU-10 during 1995–2005, and explains observed variations across types of subsidies and across countries. Based on an extensive qualitative analysis, the paper draws lessons for future successful reforms of government subsidies. 32B

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/165.

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Length: 39
Date of creation: 01 Jul 2008
Date of revision:
Handle: RePEc:imf:imfwpa:08/165
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  1. Rezessy, Silvia & Dimitrov, Konstantin & Urge-Vorsatz, Diana & Baruch, Seth, 2006. "Municipalities and energy efficiency in countries in transition: Review of factors that determine municipal involvement in the markets for energy services and energy efficient equipment, or how to aug," Energy Policy, Elsevier, vol. 34(2), pages 223-237, January.
  2. Reiche, Danyel, 2006. "Renewable energies in the EU-Accession States," Energy Policy, Elsevier, vol. 34(3), pages 365-375, February.
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