European Fiscal Rules

The sound of economics is a series of podcasts about economic
policy, brought to you by Bruegel.


Each episode will look at a key economic policy debate, discuss
why it is important and explore some of the work that Bruegel's
researchers have done in the area.


This episode is about European fiscal rules.


EPISODE 1


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


Read more:


A proposal to revive the European Fiscal Framework by Gregory
Claeys, Zsolt Darvas, Alvaro Leandro
bruegel.org/2016/03/a-proposal-…n-fiscal-framework/


How to reform EU fiscal rules by Grégory Claeys & Zsolt
Darvas http://bruegel.org/2016/04/how-to-reform-eu-fiscal-rules/


Filling the gap: open economy considerations for more reliable
potential output estimates by Zsolt Darvas & Andras Simon
bruegel.org/2015/10/filling-the…l-output-estimates/