scholarly journals Public Debt Asymmetries: The Effect on Taxes and Spending in the European Union

2002 ◽  
Author(s):  
Signe Krogstrup
Keyword(s):  
European Union ◽  
Public Debt ◽  
The European Union

Financial Assistance to Non-Euro Area Member States

2020 ◽  
Author(s):  
Alexander Thiele
Keyword(s):  
European Union ◽  
Public Debt ◽  
European Central Bank ◽  
Financial Assistance ◽  
The European Union ◽  
Member States ◽  
Money Markets ◽  
Complete Breakdown ◽  
The International Monetary Fund ◽  
Bail Out

The historic financial crisis that began on the American housing market in 2007 and from there spread all over the globe had tremendous consequences for more or less every country worldwide, especially for their respective public finances. The overall public debt level skyrocketed due to the substantial economic downfall and the necessity to bail out hundreds of financial institutions that had suffered severe losses when the American subprime market collapsed and the money markets froze. Though the States were (with tremendous help by the European Central Bank) finally successful in preventing a complete breakdown of the major financial markets, their intervention left the national budgets and the balance of payments (BOP) of several of them in a devastating condition with insolvencies only being averted by massive external and mainly financial assistance by other States and institutions (especially the International Monetary Fund (IMF)). Some of these states facing such a financial calamity were Member States of the European Union (EU)—a fact having an important normative implication: Other Member States wanting to help financially were bound by the normative framework of the European Union Treaties. And the same was obviously true for the European Union itself where it wanted to initiate any form of (financial) assistance.

Fiscal Decentralization and Public debt in the European Union

10.4335/171 ◽  
2012 ◽  
Vol 10 (3) ◽  
Author(s):  
Lenka Horváthová ◽  
Julius Horváth ◽  
Vladimír Gazda ◽  
Matúš Kubák
Keyword(s):  
European Union ◽  
Public Debt ◽  
Fiscal Decentralization ◽  
Panel Data Analysis ◽  
Medium Size ◽  
The European Union ◽  
The Public ◽  
Small Countries ◽  
Average Size ◽  
The Relationship

This paper analyses the relationship between fiscal decentralization and the level of the public debt in the twenty seven member countries of the European Union. Our panel data analysis points to the importance of size as fiscal decentralization reduces public debt in large and small countries, but not in medium - size countries. In addition, our results show that the number of government levels and average size of the lowest government unit is insignificant with respect to the public debt in these countries.

scholarly journals General government deficit and public debt in EU member states

2011 ◽  
Vol 2 (4) ◽  
pp. 29-41
Author(s):  
Michał Wielechowski
Keyword(s):  
European Union ◽  
Public Debt ◽  
Budget Deficit ◽  
The European Union ◽  
Member States ◽  
Public Finances ◽  
Eu Member States ◽  
General Government ◽  
Government Deficit ◽  
The Eu

The aim of this article is the presentation and the attempt to analyse such phenomena as: an excessive general government deficit and public debt in EU Member States over the past 3 years. For the European Union the years 2008-2010 were the time when public finances of most member countries worsened dramatically. The average budget deficit in the EU increased during that period to a value of almost 7% compared to gross domestic product and public debt reached almost 80% of GDP. Referring the numbers to the principles of the budgetary policy in the Treaty on the European Union (the deficit should not exceed 3% in relation to GDP and public debt – 60% of GDP), the observance of budgetary discipline has been significantly violated. In consequence, the excessive deficit procedure has been initiated. in relation to almost all the countries of the EU, Its purpose was to force the member countries to take concrete actions to stabilize public finances. The economic crisis that began in the second half of 2007 in the United States of America which resulted in a significant deterioration of the finances of all the EU member countries might be regarded as the major source of violation of their budgetary discipline. The reactions of most governments TO the harmful effects caused by the financial crisis were to stimulate national economies and stem the decline of domestic demand. The higher level of public expenditures was simultaneously the cause of increased budget deficits,. To develop and present the problem of an excessive budget deficit and public debt in the EU countries some statistical methods were used and the data source statistics were mainly carried out by the European Commission and the European Statistical Office.

scholarly journals Stock-Flow Adjustment – Only a Residual Value? Evidence from European Union Countries

e-Finanse ◽  
2019 ◽  
Vol 15 (3) ◽  
pp. 10-20
Author(s):  
Monika Banaszewska
Keyword(s):  
European Union ◽  
Public Debt ◽  
Budget Deficit ◽  
Fiscal Sustainability ◽  
The European Union ◽  
Fiscal Transparency ◽  
Flow Adjustment ◽  
European Union Countries ◽  
Stock Flow ◽  
The Empirical Analysis

AbstractThe aim of the article is to investigate the fiscal determinants of stock-flow adjustment (SFA). Previous literature suggests that SFA may be used strategically to reduce budget deficit and public debt. As such, SFA impairs fiscal transparency and may endanger fiscal sustainability. Therefore, special attention should be paid by economists and policymakers. The study pertains to the European Union countries in the years 2005-2016. The empirical analysis supports the hypothesis that SFA is inversely related to public debt, whereas the inverse relationship between budget balance and SFA is not confirmed. The article contains additional analyses for selected components of SFA as well as narrower time and space coverage.

scholarly journals La reforma constitucional suiza : el origen de la "regla de oro fiscal"

2012 ◽  
pp. 455
Author(s):  
Mónica Arenas Ramiro
Keyword(s):  
European Union ◽  
Economic Crisis ◽  
Public Debt ◽  
Golden Rule ◽  
The European Union ◽  
Member States ◽  
The Public ◽  
Debt Brake ◽  
The Way

Si bien la crisis económica que estamos viviendo afecta a todos los Estados miembros de la Unión Europea, la manera de afrontarla de unos y otros varía considerablemente, sin que en ninguno de los casos parezcan producirse resultados óptimos. Por este motivo, desde la propia Unión, ante el peligro de que la ruptura económica y monetaria se produzca, se ha orientado el proceso de estabilidad fiscal aconsejando a sus Estados miembros introducir un límite al gasto público en sus textos constitucionales. Esta solución, adoptada por algunos países como Alemania, Francia, o España, ha sido recibida con cierta suspicacia y con pocas esperanzas. No obstante, este freno al endeudamiento público, esta «regla de oro fiscal», fue ya constitucionalizada por Suiza en el 2001 y los resultados son verdaderamente positivos. Su experiencia, y la semejanza con nuestra forma de organización territorial, puede arrojar un poco de luz a las medidas hasta ahora adoptadas.While the economic crisis affects all Member States in the European Union, the way to resist it varies considerably from each others, and nobody have the optimal results. For this reason, from the European Union faced with the danger of economic and monetary breakdown, has guided the process of fiscal stability recomending its Member States to introduce a debt brake in their national Constitutions. The solution adopted by countries like Germany, France, or Spain, has been greeted with suspicion and without hope. However, the public debt brake —the «financial golden rule»— was already constitutionalized by Switzerland in 2001 and the results were truly positive. His experience may shed some light on our steps.

scholarly journals Fiscal Constraints In The European Union – When More Is Less?

2015 ◽  
Vol 62 (s1) ◽  
pp. 19-28
Author(s):  
Florin-Alexandru Macsim ◽  
Florin Oprea
Keyword(s):  
Public Policy ◽  
European Union ◽  
Public Debt ◽  
Fiscal Rules ◽  
Fiscal Policies ◽  
Budget Deficits ◽  
The European Union ◽  
Fiscal Institutions ◽  
Fiscal Constraints ◽  
Key Aspects

Abstract This paper examines the implications of fiscal rules measured through the Fiscal Rules Index and fiscal institutions that supervise fiscal policies on key aspects of fiscal policies such as public debt and budget deficits. Our goal was to identify the specific links between fiscal rules, institutions and fiscal policies, to support any rethinking of public policy matters. Our results confirm that the government’s consolidated debt is influenced by both fiscal rules and institutions. Through this research we have showed that an increased number of institutions and fiscal rules is closely related to an increase in public debt levels. We explained this influence by stating that cause may consist in not having one strong and independent institution, but more institutions more or less independent that divide key responsibilities. Also our results indicate that budget deficits aren’t influenced either by supervising institutions or fiscal rules.

Rising Public Debt and the Need for Fiscal Consolidation in Europe

2010 ◽  
Vol 211 ◽  
pp. F27-F37
Keyword(s):  
European Union ◽  
Euro Area ◽  
Public Debt ◽  
Economic Activity ◽  
Negative Impact ◽  
The European Union ◽  
Fiscal Consolidation ◽  
The Third ◽  
Positive Growth ◽  
The Eu

The deepest, longest and most broadly-based recession the European Union has ever experienced appears to have come to an end. The third quarter of 2009 saw GDP in the EU increase by 0.3 per cent and economic activity in the Euro Area rose by 0.4 per cent. The recovery is expected to be broadly based across countries. After deep contractions registered in 2009 in all members of the EU (with the exception of Poland), all but four EU economies are expected to have recorded some growth in the second half of 2009. Greece, Ireland, Spain and Latvia suffered more than other EU economies, due to their intrinsic vulnerabilities, which reinforced the negative impact of the global shock. These economies are expected to record only moderate positive growth in 2011.

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