№ 12/2020

Fìnansi Ukr. 2020 (12): 21–42https://doi.org/10.33763/finukr2020.12.021

PUBLIC FINANCE MANAGEMENT

BALAKIN Robert ¹

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0001-6431-6635

Independent fiscal institutions in the member states of the EU: functions and tasks in the condition of the COVID-19 pandemic

One of the most salient innovations of the current reforms of the EU fiscal framework has been the decision to promote the establishment of Independent Fiscal Institutions (IFIs). The recently enhanced EU fiscal governance framework (through the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, Council Directive 2011/85/EU, Regulation (EU) No 473/2013 on requirements for national budgetary frameworks) broadened the role and formalized the tasks of Independent fiscal institutions (IFIs). In order for the EU fiscal framework to function effectively, it is highly desirable to ensure that the IFIs are strong enough to fulfill their functions. The IFIs are heterogeneous in tradition, mandates, specific tasks performed, size and resources. This paper examines the functions, tasks and organizational structures of the Independent fiscal institutions. IFIs have been established across the EU member states to provide independent analysis of fiscal policy and performance, thus promoting fiscal transparency, sound fiscal policy and sustainable public finances. This article reviews the actions that IFIs in the EU countries are taking during the rescue phase of the COVID-19 pandemic. As governments took actions to respond to the COVID-19 pandemic, well-functioning IFIs have been providing stakeholders with rapid analysis of emergency measures, including economic and fiscal forecasts and scenario analysis; assessments of government planning assumptions? monitoring activation and implementation of general escape clauses; and costing emergency budgetary measures. This analysis has been particularly important in informing debate in national parliaments and promoting transparency and accountability on emergency spending related to the pandemic. The European Fiscal Board suggests urging flexibility in fiscal rules and applying the general escape clause to its full extent. It also urged decision makers to keep in mind the lessons learned from the Global financial crisis, namely that the recovery path must leave room for growth-friendly public expenditure. There is a need to ensure that all of the IFIs enjoy a strong position at the national level to conduct all their tasks.

Keywords:public finance, independent fiscal institutions, parliamentary budget office, fiscal framework, fiscal policy, fiscal rules, COVID-19 pandemic

JEL: H12, H83, H87

BALAKIN R. . Independent fiscal institutions in the member states of the EU: functions and tasks in the condition of the COVID-19 pandemic / R. . BALAKIN // Фінанси України. - 2020. - № 12. - C. 21-42.

Article original in Ukrainian (pp. 21 - 42)

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