Review article

Fiscal Rules as the Key Response to the Fiscal Crisis

Sanja Bach orcid.org/0000-0002-5484-6402 ; Ministarstvo financija RH

Abstract

As key response to financial crises and to the explosion of government deficits and debts, the importance of application and prevalence of fiscal rules throughout the world has been heightened in order to constrain the countries in their current fiscal policies, reduce deficits and debts and improve their fiscal positions and fiscal discipline. However, the rules are employed at the juncture
of politics and economics, and this relationship is bilateral. The efficiency and fiscal restrictions depend on political willingness to adhere to these rules, while insisting on the strength of fiscal consolidation may contribute to more responsible, transparent and sustainable public finances, and to the prevention of future fiscal crises. This refers to Croatia as well, for which it is important
to follow the changes and application of fiscal rules in the EU.

Keywords

fiscal rules; state budget; public finances; transparency; EU; fiscal committee

Hrčak ID:

143065

URI

https://hrcak.srce.hr/143065

Publication date:

17.6.2014.

Article data in other languages: croatian

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