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Mechanism for Corrective Action on Budget Imbalances

Transylvanian Review of Administrative Sciences

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Title Mechanism for Corrective Action on Budget Imbalances
 
Creator CATRINA, Ion Lucian; Associate professor, Department of Political Sciences,
Dimitrie Cantemir University, Bucharest, Romania
Postdoctoral researcher, Academy of Economic Studies,
Bucharest, Romania
 
Subject budget deficit; growth; adjustments; consolidation.
 
Description The European Fiscal Compact sets the obligation for the signatory states to establish an automatic mechanism for taking corrective action on budget imbalances. Nevertheless, the European Treaty says nothing about the tools that should be used in order to reach the desired equilibrium of budgets, but only that it should aim at correcting deviations from the medium-term objective or the adjustment path, including their cumulated impact on government debt dynamics. This paper is aiming at showing that each member state has to build the correction mechanism according to the impact of the chosen tools on economic growth and on general government revenues. We will also emphasize that the correction mechanism should be built not only exacerbating the corrective action through spending/ tax based adjustments, but on a high quality package of economic policies as well.
 
Publisher Babes Bolyai University
 
Contributor This work was co-fi nanced from the European Social Found through Sectorial Operational Program Human Resources Development 2007-2013, project number POSDRU/89/1.5/S/59184, ‘Performance and excellence in postdoctoral research in Romanian economic science
 
Date 2014-02-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://rtsa.ro/tras/index.php/tras/article/view/154
 
Source Transylvanian Review of Administrative Sciences; 2014: Issue No. 41 E/February; 46-55
18422845
 
Language eng
 
Relation http://rtsa.ro/tras/index.php/tras/article/view/154/150
 
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