Podcast

European fiscal rules

The current European fiscal framework is inefficient and relies on indicators that are badly estimated. How can the rules be improved and what can a European fiscal council add to this?

By: Date: June 15, 2016 European Macroeconomics & Governance Tags & Topics

 

The strong fiscal tightening implemented in many European countries since 2010 has contributed to the poor economic recovery in Europe. This raises doubts about the effectiveness of the EU’s fiscal rules in achieving their two main objectives: public debt sustainability and fiscal stabilisation.

A key indicator in the framework is the structural budget balance, but it is very difficult to measure. Recommendations made based on the structural budget balance are often revised when initial estimates turn out to be wrong.

Another problem with the current EU fiscal framework is the opaque web of ‘flexibility’ clauses. This leads to never-ending bargaining between member states and the European Commission about the implementation of the rules, which undermines trust in them.

A recent Bruegel policy contribution by Gregory Claeys, Zsolt Darvas and Alvaro Leandro analyses and assesses the framework and proposes a new set of rules.

Producers – Giuseppe Porcaro & Vanessa Cotterell

Content

The current European fiscal framework and its flaws — until min. 07:50

Bruegel scholars propose new fiscal rules — from min. 07:50

Is a European fiscal council a good idea? — from min. 11:30

Speakers

Gregory Claeys — Research Fellow, Bruegel

Zsolt Darvas — Senior Fellow, Bruegel

Jochen Andritzky — Secretary General of the German Council of Economic Experts

Filippo Taddei —  Chief Economist of the Democratic Party, Italy

Presenters —  Áine Quinn, Bryn Watkins, Bruegel

 

 

View comments
Read article More on this topic

Blog Post

Zsolt Darvas
DSC_0798
dsc_1000

The Brexit bill: uncertainties in the estimate of EU pension and sickness insurance liabilities

Pension and sickness insurance liabilities for EU staff could be an especially contentious part of negotiations on an EU-UK financial settlement: the “Brexit bill”. This post looks behind the calculation of the alleged cost of pension benefits and concludes that it may be less than half of what it seems.

By: Zsolt Darvas, Konstantinos Efstathiou and Inês Goncalves Raposo Topic: European Macroeconomics & Governance Date: February 17, 2017
Read article More on this topic

Blog Post

Zsolt Darvas
DSC_0798
dsc_1000

The UK’s Brexit bill: could EU assets partially offset liabilities?

The ‘Brexit bill’ is likely to be one of the most contentious aspects of the upcoming negotiations. But estimates so far focus largely on the EU costs and liabilities that the UK will have to buy its way out of. What about the EU’s assets? The UK will surely get a share of those, and they could total €153.7bn.

By: Zsolt Darvas, Konstantinos Efstathiou and Inês Goncalves Raposo Topic: European Macroeconomics & Governance Date: February 14, 2017
Read article More on this topic More by this author

Blog Post

Marek Dabrowski

Challenges to debt sustainability in advanced economies

The gross general government debt-to-GDP ratios in many advanced economies have reached the highest levels in peacetime history and continue to grow, putting into question sovereign solvency in these economies.

By: Marek Dabrowski Topic: European Macroeconomics & Governance Date: December 8, 2016
Read article More by this author

Blog Post

DSC_0794

Trump, NATO and European defence spending

US President-Elect Donald Trump made critical statements about low European defence spending during the election campaign - signaling an expectation that Europe should contribute more to the cost of its security. Indeed, most European NATO members have spending well below the 2% target that NATO membership entails. Reaching this target could cost the EU27 NATO members 96 billion USD per year.

By: Justine Feliu Topic: European Macroeconomics & Governance, Global Economics & Governance Date: November 15, 2016
Read article Download PDF More on this topic More by this author

Policy Contribution

pc_21_16_page_01

Are advanced economies at risk of falling into debt traps?

One of the consequences of the global financial crisis has been rapid growth in public debt in most advanced economies. This Policy Contribution assesses the size of public debt in advanced economies and considers the potential consequences of sovereign insolvency.

By: Marek Dabrowski Topic: European Macroeconomics & Governance Date: November 10, 2016
Read article More on this topic More by this author

Podcast

Podcast

Decarbonisation and climate change: looking ahead

Decarbonisation plays a crucial role in the fight against climate change. What progress has been made so far, and what are the challenges ahead?

By: Bruegel Topic: Energy & Climate Date: November 8, 2016
Read article More on this topic More by this author

Podcast

Podcast

Unlocking the potential of innovation

Innovation is a hot topic in Europe. But how can its potential be used to the fullest, and what are the challenges in doing that?

By: Bruegel Topic: Innovation & Competition Policy Date: November 8, 2016
Read article More on this topic More by this author

Podcast

Podcast

Brexit: the way forward

There is still huge uncertainty about the future of EU-UK relations. What will Brexit mean for politics and business, and is there any scope for flexibility in the EU’s fundamental freedoms? We gather experts from Bruegel and the Financial Times to debate the issues.

By: Bruegel Topic: European Macroeconomics & Governance Date: November 8, 2016
Read article More on this topic More by this author

Podcast

Podcast

Debt resolution: moving on after the crisis

An excess of indebtedness is constraining economic growth in many economies. Indeed, the deleveraging since the financial crisis is exceptionally slow. Why is this the case, and what can be done about it?

By: Bruegel Topic: Finance & Financial Regulation Date: November 8, 2016
Read article More on this topic More by this author

Podcast

Podcast

Opportunities and challenges for EU-China trade relations

How can trade relations between the EU and China be strengthened? How can the current situation be improved, and what are the potential challenges to do that?

By: Bruegel Topic: Global Economics & Governance Date: November 8, 2016
Read article More on this topic More by this author

Podcast

Podcast

Inclusive growth and inequality in Europe

Many Europeans have felt the effects of inequality due to the economic and financial crisis and stagnation. How can inequalities be tackled and which policies can support inclusive growth?

By: Bruegel Topic: European Macroeconomics & Governance Date: November 8, 2016
Read article Download PDF More on this topic

Blueprint

cover4

An anatomy of inclusive growth in Europe

This Blueprint offers an in-depth analysis of inequalities of income and wealth in the EU, as well as their causes and consequences. How evenly are the benefits of growth distributed in our economies, and what does this mean for fairness and social mobility? How could and should policymakers react?

By: Zsolt Darvas and Guntram B. Wolff Topic: European Macroeconomics & Governance Date: October 27, 2016
Load more posts