Fiscal Policy Making in the European Union - An Assessment of Current Practice and Challenges

This book examines key aspects of the measurement of fiscal policy making in the EU fiscal surveillance framework, highlighting strengths and weaknesses of current assessment practice. Based on the proceedings of a workshop organized by the European Commission’s Directorate-General Economic and Financial Affairs, the book’s contributions from leading experts will be of particular value to individuals and institutions involved in the fields of national and international economics and finance. Key Features: * Chapters are arranged within three main sections: Long-term sustainability; Measurement of the underlying budgetary position and discretionary fiscal policy; Reliability of fiscal indicators * Edited by Martin Larch and João Nogueira Martins * Expert contributors include António Afonso, Fabrizio Balassone, Fernando Ballabriga, Roy Barrell, Peter Brandner, Peter Claeys, Leopold Diebalek, Per Eckefeldt, Jonas Fischer, Daniele Franco, Jagadeesh Gokhale, Ian Hurst, Walpurga Köhler-Töglhofer, György Kopits, Martin Larch, Carlos Martinez-Mongay, James Mitchell, João Nogueira Martins, Jan in ’t Veld, Stefania Zotteri * Text amply supported by charts and tables. * Bibliography and Index

1. Introduction Part I "Long-term Sustainability" 2. A Further Inquiry about the Sustainability of Fiscal Policy in the EU 3. Unfunded Obligation Measures for EU Countries Part II "Measurement of the Underlying Budgetary Position and Discretionary Fiscal Policy" 4. Budget Balances Decomposed: Tracking Fiscal Policy in Austria 5. The Dynamic Behaviour of Budget Components and Output – the Cases of France, Germany, Portugal and Spain Part III "Reliability of Fiscal Indicators" 6. The Reliability of EMU Fiscal Indicators: Risks and Safeguards 7. Uncertainty Bounds for Cyclically Adjusted Budget Balances.