Hostname: page-component-cd9895bd7-8ctnn Total loading time: 0 Render date: 2024-12-31T23:17:57.606Z Has data issue: false hasContentIssue false
  • English
  • Français

Political Power, Fiscal Institutions and Budgetary Outcomes in Central and Eastern Europe

Published online by Cambridge University Press:  25 February 2010

MARK HALLERBERG  and
SAMI YLÄOUTINEN
MARK HALLERBERG
Affiliation:
Hertie School of Governance, Quartier 110 Friedrichstraße 180, Berlin-10117, Germany, email: [email protected]
SAMI YLÄOUTINEN
Affiliation:
Finnish Ministry of Finance, Snellmaninkatu 1 A, Helsinki, FI-00023, Finland, email: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper considers the effects of fiscal governance in Central and East European countries 1998–2008. The first part makes predictions about which form of fiscal governance fits which form of government. Under multi-party coalition governments, fiscal contracts where governments make political commitments to multi-annual fiscal plans work well. In countries where two political blocks face off against one another, delegation based around a strong finance ministry should be most effective. The second part examines electoral and party systems, which affect the form of government in place. The third part documents norms, rules, and institutions in place. The final section considers the joint effects of fiscal governance on fiscal outcomes. On balance, the underlying political climate is crucial for determining what types of fiscal norms, institutions, and rules function best. The more countries diverge from their expected form of fiscal governance, the greater the increase in a country's debt burden.

Keywords

budgetary proceduresfiscal rulespublic finances
Type
Research Article
Information
Journal of Public Policy , Volume 30 , Special Issue 1: Performing to Type? Institutional Performance in New EU Member States , April 2010 , pp. 45 - 62
Copyright
Copyright © Cambridge University Press 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alt, J. and Lassen, D. D. 2006 Fiscal Transparency, Political Parties and Debt. European Economic Review 530–550.Google Scholar
Benoit, K. 2001 Two steps forward, one step back: Electoral coordination in the Hungarian Elections of 1998. Paper prepared to the 2000 Annual meeting of the American Political Science Association.Google Scholar
Benoit, K. 2002 Like Déja Vu All Over Again: The Hungarian Elections of 2002. Journal of Communist Studies and Transition Politics 18 (4, Dec): 119–133.Google Scholar
Berglund, S., Tomas, H. and Aarebrot, F. H. (eds.) 1998 Foundations of change. The handbook of political change in Eastern Europe. Cheltenham: Edward Elgar Publishing Limited. 1–12.Google Scholar
Birch, S. 2003 Electoral Systems and Political Transformation in Post-Communist Europe. New York: Palgrave Macmillan.CrossRefGoogle Scholar
Cox, G. W. 1997 Making votes count: Strategic coordination in the world's electoral systems. Cambridge: Cambridge University Press.Google Scholar
Duverger, M. 1954 Political Parties. Their Organization and Activity in the Modern State. New York: Wiley.Google Scholar
European Commission 2007 Public Finances in EMU. Brussels: Directorate-General for Economic and Financial Affairs.Google Scholar
Fabrizio, S. and Mody, A. 2006 Can Budget Institutions Counteract Political Indiscipline? Economic Policy 21(48): 689–739.CrossRefGoogle Scholar
Gleich, H. 2003 Budget Institutions and Fiscal Performance in Central and Eastern European Countries. ECB Working Paper No. 215. February.CrossRefGoogle Scholar
Hallerberg, M. and Yläoutinen, S. 2008 “Fiscal Governance in Central and Eastern Europe Before and After European Union Accession: What Role Europeanisation?” Hertie School of Governance Working Paper.Google Scholar
Hallerberg, M., Rolf, S. and von Hagen, J. 2009 Fiscal Governance: Evidence from Europe. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Hallerberg, M., de Souza, L. V. and Clark, W. R. 2002 “Political Business Cycles in EU Accession Countries.” European Union Politics. 3(2): 231–250.CrossRefGoogle Scholar
Hellén, T., Berglund, S. and Aarebrot, F. H. 1998 From transition to consolidation. In Berglund, S., Hellén, T. and Aarebrot, F. H. (eds.) The handbook of political change in Eastern Europe. Cheltenham: Edward Elgar Publishing Limited. 365–377.Google Scholar
Lewis, P. 2000 Political Parties in Post-Communist Eastern Europe. New York: Routledge.Google Scholar
Lipset, S. M. and Rokkan, S. (eds.) 1967 Party systems and voter alignment. New York: Free Press.Google Scholar
Neto, O. A. and Cox, G. W. 1997 Electoral institutions, cleavage structures, and the number of parties. American Journal of Political Science 41, 1: 149–174.CrossRefGoogle Scholar
Olson, D. M 1998 Party formation and party system consolidation in the new democracies of Central Europe. Political Studies 46.3: 432–464.CrossRefGoogle Scholar
Rose, R. and Munro, N. 2009 Parties and elections in new European democracies. Colchester, Essex: ECPR Press.Google Scholar
Strmiska, M. 2000 Major poles, “third parties” and Bulgarian Multiparty. Central European Political Studies Review, 3 (1).Google Scholar
Tanzi, V. and Schuknecht, L. 2000 Public Spending in the 20th Century. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Tavits, M. 2005 The Development of Stable Party Support: Electoral Dynamics in Post–Communist Europe. American Journal of Political Science, 49(2): 283–298.Google Scholar
Tavits, M. 2008 On the Linkage between Electoral Volatility and Party System Instability in Central and Eastern Europe. European Journal of Political Research, 47(5): 537–555.CrossRefGoogle Scholar
von Hagen, J. 1992 Budgeting Procedures and Fiscal Performance in the European Communities. Economic Papers 96 Brussels: European Commission.Google Scholar
von Hagen, J. and Harden, I. 1995 Budget Processes and Commitment to Fiscal Discipline. European Economic Review 39: 771–779.CrossRefGoogle Scholar
von Hagen, J. and Wolff, G. 2006 What Do Deficits Tell Us about Debt? Empirical Evidence on Creative Accounting with Fiscal Rules in the EU. Journal of Banking and Finance 30(12): 3259–3279.Google Scholar
Yläoutinen, S. 2005 Development and Functioning of Fiscal Frameworks in the Central and Eastern European Countries. Dissertation, Jyväskylä Studies in Business and Economics 42, University of Jyväskylä.Google Scholar