Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Boxes
- Contributors
- Abbreviations and acronyms
- 1 Introduction
- 2 Towards a new architecture for financial stability in Europe
- Part I The experience of the crisis
- Part II Accession to the euro area
- Part III The future of the euro area
- 11 Why the current account may matter in a monetary union: lessons from the financial crisis in the euro area
- 12 National fiscal rules within the EU framework
- 13 The road to better resolution: from bail-out to bail-in
- 14 Financial stability and monetary policy: lessons from the euro area
- 15 Is there a case for price-level targeting?
- 16 Heterogeneity in the euro area and why it matters for the future of the currency union
- 17 The euro area: how to regain confidence?
- 18 How to regain confidence in the euro area?
- 19 How to save the euro? Lessons from the US
- Index
- References
12 - National fiscal rules within the EU framework
from Part III - The future of the euro area
Published online by Cambridge University Press: 07 October 2011
- Frontmatter
- Contents
- Figures
- Tables
- Boxes
- Contributors
- Abbreviations and acronyms
- 1 Introduction
- 2 Towards a new architecture for financial stability in Europe
- Part I The experience of the crisis
- Part II Accession to the euro area
- Part III The future of the euro area
- 11 Why the current account may matter in a monetary union: lessons from the financial crisis in the euro area
- 12 National fiscal rules within the EU framework
- 13 The road to better resolution: from bail-out to bail-in
- 14 Financial stability and monetary policy: lessons from the euro area
- 15 Is there a case for price-level targeting?
- 16 Heterogeneity in the euro area and why it matters for the future of the currency union
- 17 The euro area: how to regain confidence?
- 18 How to regain confidence in the euro area?
- 19 How to save the euro? Lessons from the US
- Index
- References
Summary
Introduction
Since the early 1990s many European countries have introduced fiscal rules and procedures which are aimed at either preventing or reducing fiscal imbalances. This development reflects three main factors: the experience of the previous decades, characterised by large imbalances, public debt growth and the implementation of pro-cyclical policies; the creation of the Economic and Monetary Union (EMU) and the introduction of fiscal rules at the European Union (EU) level; and the challenges of ongoing demographic changes.
The reforms have involved three main lines of action: (1) the introduction of numerical fiscal rules; (2) the modification of budgetary procedures, in particular with a view to strengthening the role of the Ministry of Finance and to making budgetary policy more medium-term oriented; and (3) the creation of independent fiscal institutions, which can contribute to macro fiscal forecasting, fiscal analysis, policy design and even implementation.
- Type
- Chapter
- Information
- The Euro Area and the Financial Crisis , pp. 222 - 242Publisher: Cambridge University PressPrint publication year: 2011
References
- 1
- Cited by