Periods of Fiscal Consolidation in Selected European Economies

Mirdala, Rajmund

doi:10.1016/s2212-5671(14)00462-6

Cited by 5 publications

(4 citation statements)

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“…As the European Commission (2011) explains, the public debt of states is an indicator of fiscal vulnerability and is therefore also a tool for assessing fiscal risk. Mirdala (2014) considers it worrying when the growing sovereign debt is coupled with an excessive government deficit, hence the importance of analysing the variables that constitute public spending and public revenue, opinions also shared by Everaert et al (2009). As Petrie (2013) points out, one of the responsibilities of governments is to manage fiscal risk -failure to fulfil this mission is itself a fiscal risk (Porumboiu and Brezeanu, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Government Debt in the Member States of the European Union: Sources of Fiscal Risk

Porumboiu

Brezeanu

2022

Proceedings of the International Conference on Business Excellence

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In times when the national economy needs increased financial support from governments, the fiscal space they have and the determinants of public debt come to the fore. Sudden increases in public spending or significant decreases in public revenue represent fiscal risks, and the level of sovereign debt is a measure to quantify fiscal risk. At international level, banking crises, government guarantees, publicprivate partnerships, companies with majority state capital, and non-performing loans are revealed by history as the main sources of financial crises and fiscal risk. This study aims to identify whether social assistance expenditures, government guarantees, public-private partnerships, non-performing loans, or tax revenues influence the evolution of the government debt of the Member States of the European Union. The data used were taken from Eurostat and were organised as panel data, the analysed period is 2010-2018. To estimate the regressions, we used the Eviews software, and the results obtained revealed that social assistance is the variable that most strongly influences, in the same sense, the public debt. This points to the fact that changes in pension and social assistance spending, for example, topics with greater social impact, are capable of further indebtedness and have long-term effects on government spending on interest.

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Section: Literature Reviewmentioning

confidence: 99%

Determinants of Government Debt in the Member States of the European Union: Sources of Fiscal Risk

Porumboiu

Brezeanu

2022

Proceedings of the International Conference on Business Excellence

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“…In that sense, there are one-year, also referred to as "cold showers", and multi-year or gradual consolidations. The period of fiscal consolidation is the period of the year in which the cyclically-adjusted primary budget balance improves by at least 1.5% of GDP or the period of 3 consecutive years in which the cyclically-adjusted primary deficit does not worsen by more than 0.5% of GDP (Alesina & Ardagana, 1998;Mirdala 2013).…”

Section: Introductionmentioning

confidence: 99%

“…Ultimately, fiscal consolidation is expansive if the average GDP growth rate in the consolidation period and two years after that period is higher than the average growth rate at the beginning of the fiscal consolidation period (Alesina & Ardagana, 1998;Mirdala 2013).…”

Section: Introductionmentioning

confidence: 99%

Interdependence of Fiscal Consolidation and Economic Growth in Eu Countries With Different Levels of Development

Gojković

2021

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The concept of fiscal consolidation is most often mentioned during major economic crises, which are usually the result of economic shocks caused by crises such as the one in 2008, but also the last crisis caused by the COVID-19 pandemic. In such circumstances, as a rule, high deficit and/or enormous growth of public debt occur. Therefore, many countries need to consolidate fiscally their public finances. In this paper, the focus of the analysis is on the impact of fiscal consolidation on the economic growth of the European Union with different levels of development. It is assumed that countries with low incomes and less developed economies have a special obligation and a need for stable public finances. The same refers to the small and open economies that are largely exposed to the stability/instability of the surrounding countries. Therefore, it is very important that countries with a low level of development pay special attention to the fiscal stability of the country’s public finances.

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“…Ancak burada önemle belirtelim ki, her iki yaklaşımda da GSYİH'nin bir oranı olarak devlet borçlarının makul bir düzeye düşürüldüğü ve bunda sürdürülebilirliğin sağlandığı ve dolayısıyla da uzun dönemde büyüme üzerinde olumsuz bir etki meydana getirmediği kanaati hasıl olduğunda mali konsolidasyon başarılı olarak kabul edilmektedir (Barrios, Langedijk & Pench, 2010;Mirdala, 2014 Giavazzi & Pagano (1990) tarafından ortaya atılan ve "maliye politikasının Keynesyen olmayan etkileri" olarak klişeleşen bu hipotez, bu konuda çok ciddi bir literatürün de oluşmasına zemin hazırlamıştır. Giavazzi & Pagano (1990) çizgisindeki çalışmalar için bkz.…”

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