Fiscal Stability of the EU: The Contribution of National Fiscal Councils
Fiscal Stability of the EU: The Contribution of National Fiscal Councils

Author(s): Filip Petkov
Subject(s): Politics / Political Sciences, Politics, Economy, Supranational / Global Economy, Fiscal Politics / Budgeting
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: fiscal policy; EU fiscal pact; independent fiscal institutions; independent fiscal councils; national fiscal council; fiscal board; fiscal integration; Economic and monetary union
Summary/Abstract: The centralization of fiscal policies in the European Union (EU) countries is an ongoing process that has gained particular importance as a result of the last financial and economic crisis of 2008-2009. The approaches for conducting fiscal centralization as well as the level of delegation of competences are fostering a discussion about the architecture of the optimal fiscal union as part of the Economic and Monetary Union (EMU) within the EU. The cornerstone of the debate is how to make it possible for the national governments to possess with sufficient fiscal instruments and space while at the same time avoiding risks of excessive budget deficits. The establishment of advisory expert bodies was one of the steps the EU has taken to better coordinate national governments in regards to the sound management of public finances and transparency in the reporting and implementation of national budgets. The activity of the Fiscal Council in Bulgaria is regulated by law, but its opinions and conclusions are non-binding. Independent experts carry out a critical review of the implementation of the government’s fiscal program, provide evaluation and recommendations. However, the government does not have to comply with them. The question is whether this needs to change and, if so, will fiscal councils serve as a more federal form of control over national governments’ budgetary policies?

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