Fiscal Rules in the European Union
Less Is More
Bibliographic Data
| ID | 10069392 |
|---|---|
| Authors | Bogdan Căpraru (0000-0003-4261-5268, Alexandru Ioan Cuza University of Iași, Faculty of Economics and Business Administration, Romanian Fiscal Council, and National Institute for Economic Research, Romanian Academy Bucharest), Anastasios Pappas (National and Kapodistrian University of Athens, MBA, and Hellenic Fiscal Council Athens), Nicu Sprincean (0000-0001-6815-0003, Alexandru Ioan Cuza University of Iași, Faculty of Economics and Business Administration, and National Institute for Economic Research, Romanian Academy Bucharest, corresponding author) |
| Year | 2024 |
| Volume | 63 |
| Issue | 1 |
| Pages | 320-334 |
| Publication date | 2024-05-19 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | JCMS Journal of Common Market Studies (JOURNAL) |
| Journal identifiers | ISSN: 0021-9886 • E-ISSN: 1468-5965 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/jcms.13628 |
| OpenAlex | W4397292499 |
| Language | EN |
| Citations received | 1 |
| References cited | 40 |
In this article, we examine the non‐linear relationship between the number of fiscal rules in place and compliance with the European Union's (EU) numerical fiscal targets included in the Stability and Growth Pact (SGP). Using a sample composed of 27 EU Member States for a period spanning 2000 to 2021, we document that countries' compliance with fiscal rules is positively associated with the number of numerical fiscal targets. However, this association only holds up to a specific threshold. Once this threshold is achieved, the relationship becomes negative, implying that the multiplication of numerical fiscal rules may undermine compliance, thereby reducing their effectiveness. In addition, we find that general elections and frequent changes in government reduce compliance, whereas economic adjustment programmes contribute positively to countries' compliance with fiscal targets. The findings bear critical policy implications against the backdrop of the current review of the European fiscal framework
Economics · European union · Fiscal policy · Fiscal union · International economics · International trade · Macroeconomics · Political science · European Monetary and Fiscal Policies · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth
The Political Economy of Fiscal Adjustments
Initial conditions and moment restrictions in dynamic panel data models
The Political Business Cycle
Determinants of compliance with fiscal rules
Do fiscal rules cause better fiscal balances? A new instrumental variable strategy
Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data
Unconventional Monetary Policies in the Euro Area, Japan, and the United Kingdom
Do fiscal rules cause budgetary outcomes
Political business cycles 40 years after Nordhaus
The Impact of Government Debt on Growth
Politics of fiscal consolidation in Europe
Explaining deviations from the Stability and Growth Pact
| Citations per year | 1 |
|---|---|
| Citation span | 2026 - 2026 (1) |
| Highly cited | No |