ARE FISCAL RULES AN EFFECTIVE INSTRUMENT IN CONSOLIDATING PUBLIC FINANCES? CONCLUSIONS FROM THE ECONOMIC CRISIS
DOI:
https://doi.org/10.12775/EiP.2016.005Keywords
effective fiscal rules, public finances, economic crisis, structural deficit, over the cycle deficitAbstract
The paper aims to assess the role of fiscal rules in the process of consolidating public finances and maintaining macroeconomic stability in the EU Member States in the period of the economic crisis. The paper puts forward the thesis that fiscal rules were not an effective instrument for ensuring fiscal discipline in times of crisis. It will present the most important issues of the process of evolution of the rules during the crisis. A review and an analysis of legislation and literature on reforms implemented in the area of fiscal rules, confirms this thesis. The paper points to the need to create such fiscal rules that could contribute not only to fiscal stability but also to macroeconomic stability of the economy and concludes with recommendations for the creation of effective fiscal rules and their desirable features. The rules should be based on the structural balance or the over the cycle balance (but, in order for such rules to be effective, the structural deficit should be relatively low). Effective enforcement of the rules is necessary as well as a strong legal basis for the rules. However, one may remember that the efficiency of the rules is also determined by causes and the scope of fiscal problems in individual countries. The rules alone are not sufficient to overcome the strong systemic and structural burdens placed on economies. In such a situation, a better solution is to develop a long-term strategy for reducing deficit and debt levels, incorporating fiscal rules as one of its elements.References
Alesina A., Giavazzi F., Pakt Stabilizacji, który destabilizuje Europę, “Rzeczpospoli-ta”, 02.11.2002.
Balassone F., Kumar M.S., Cyclicality of Fiscal Policy, [in:] M.S. Kumar, T. Ter-Minassian (eds.), Promoting Fiscal Discipline, IMF, 2007.
Communication from the Commission to the European Parliament, the European Council, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions of 12 May 2010 — Reinforc-ing economic policy coordination, COM(2010) 250.
Działo J., Czy Unia Europejska potrzebuje unii fiskalnej?, [in:] J. Sokołowski, A. Żabiński, Finanse publiczne, “Prace Naukowe UE we Wrocławiu”, Wrocław 2013.
Działo J., Polityczne uwarunkowania jakości instytucji fiskalnych, Wydawnictwo Uni-wersytetu Łódzkiego, Łódź 2009.
European Central Bank, Fiscal policy influences on macroeconomic stability and prices, ECB Monthly Bulletin, April 2004.
European Commision, http://www.europa.eu (17.07.2015).
European Commission, Public finances in EMU 2010, Luxembourg 2010.
Giżyński J., Polityka fiskalna w strefie euro, CeDeWu, Warszawa 2013.
International Monetary Fund, Fiscal Rules — Anchoring Expectations for Sustainable Public Finances, 2009.
Jędrzejowicz T., Kitala M., Wronka A., Polityka fiskalna w kraju należącym do strefy euro. Wnioski dla Polski, [in:] NBP, Raport na temat pełnego uczestnictwa Rzeczy-pospolitej Polskiej w trzecim etapie Unii Gospodarczej i Walutowej. Warszawa 2009.
Kaliszuk E., Kontrowersyjny traktat fiskalny, “Unia Europejska.pl”, No. 2(213)/2012.
Marchewka-Bartkowiak K., Reguły fiskalne, “Analizy BAS”, No. 7(32)/2010.
Oręziak L, Finanse Unii Europejskiej, PWN, Warszawa 2009.
Próchnicki L., Reguły fiskalne jako narzędzie utrzymania stabilności fiskalnej w Kra-jach Unii Europejskiej, “Studia Zarządzania i Finansów”, Wyższa Szkoła Ban-kowa w Poznaniu, No. 3/2012.
Schick A., Post-Crisis Fiscal Rules: Stabilising Public Finance while Responding to Economic Aftershocks, “OECD Journal on Budgeting”, Vol. 10, No. 2/2010, http://dx.doi.org/10.1787/budget-10-5km7rqpkqts1.
Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, http://www.consilium.europa.eu/en/european-council/pdf/Treaty-on-Stability-Coordination-and-Governance-TSCG (15.07.2015).
Wójtowicz K., Problem konstrukcji optymalnej reguły fiskalnej w warunkach kryzysu finansowego, “Zeszyty Naukowe PTE”, No. 10/2011.
Wyplosz C., Fiscal Rules: Theoretical Issues and Historical Experiences, NBER Work-ing Paper, No. 17884/2012, http://dx.doi.org/10.3386/w17884.
Downloads
Published
How to Cite
Issue
Section
Stats
Number of views and downloads: 341
Number of citations: 0