Independent body to monitor compliance with budget rules
Independent institutions for monitoring compliance with budgetary rules have been set up in the member states of the European Union on the basis of Article 5 of Regulation (EU) No. 473/2013 . The purpose of these institutions is to control the respective government in the implementation of fiscal policy . Similar institutions also exist in countries outside the European Union; they also existed within the European Union before a corresponding obligation under European law was created . The institutions should be politically independent and evaluate or create macroeconomic forecasts and fiscal projections based on budget drafts, analyze policy reforms without evaluation and monitor compliance with fiscal rules. An example of a fiscal rule in the European Union is the upper limit for the structural general government deficit of 0.5% of nominal GDP set in the European Fiscal Compact . These institutions curb deficit propensity by providing politicians and voters with independent forecasts and, in some countries, allowing them to criticize the government when the public deficit is too high.
Examples
In the European Union:
- Fiscal Council (Austria)
- Independent Advisory Board of the Stability Council (Germany)
- European Fiscal Board
Outside the European Union:
- Congressional Budget Office (United States)
Individual evidence
- ↑ Eckhard Janeba, Christoph Schröder: Can Fiscal Councils Solve the European Debt Crisis? In: Economic Service . tape 96 , no. 10 , October 2016, ISSN 0043-6275 , p. 755–762 , doi : 10.1007 / s10273-016-2045-6 ( springer.com [accessed November 29, 2019]).
- ↑ Lars Calmfors, Simon Wren-Lewis: What are fiscal councils, and what do they do? In: VoxEU.org. April 21, 2011, accessed November 29, 2019 .
- ↑ European Fiscal Board (EFA) , website of the European Commission, accessed on January 8, 2020