№ 3/2019

Fìnansi Ukr. 2019 (3): 37–55https://doi.org/10.33763/finukr2019.03.037

INTERNATIONAL FINANCES

GASANOV Sergіi ¹, KUDRJASHOV Vasyl ², BALAKIN Robert ³

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-7454-0419
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-4801-3620
³SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0001-6431-6635

Supranational fiscal rules and coordination of budgetary policy in the European Union

The article researches the introduction and application of supranational fiscal rules in the EU and their implications for the implementation of budgetary policies at the level of Member States and the EU as a whole. It is concluded that supranational rules are aimed at coordinating the fiscal policies of the Member States in order to comply with all-Union priorities, ensuring a stable state of public finances in the member states and supporting sustainable economic and social development. Particular importance is attached to monitoring budget discipline, the analysis of the dynamics of public budget indicators of the member states, the detection of deviations from adopted budget deficit and public debt indicators from EU benchmarks, and recommendations to governments on preventing the aggravation of fiscal risks. In the post-crisis period, the reform of supranational fiscal rules is being implemented in order to increase the effectiveness of their application, along with amendments to national legislation to create the necessary conditions for their implementation in practice. It is noted that an integral part of the use of fiscal rules is the expansion of transparency of fiscal operations, as well as the availability of information to the public. The introduction of independent fiscal institutions, the transition to the use of structural balance indicators, the application of new tools for fiscal risk prevention, and regulation of budgetary expenditures are highlighted. Considerable attention is paid to restoring fiscal sustainability (within the framework of the excessive deficit procedure). It is concluded that in today's conditions, compliance by Member States with the requirements of avoiding procyclical fiscal policies, the continuation of fiscal consolidation, taking into account EU priorities, observance of the recommended medium-term fiscal framework, implementation of medium-term budget planning, and raising the level of budgetary forecasting are becoming important issues. By using supranational rules, Member States are directed towards the implementation of medium-term budgetary objectives that are in line with EU requirements.

Keywords:fiscal rules, fiscal policy coordination, fiscal risks, monitoring of fiscal rules, transparency of budget operations, excessive deficit procedure, independent financial institutions

JEL: F53, F55, H77, H87

Gasanov S. . Supranational fiscal rules and coordination of budgetary policy in the European Union / S. . Gasanov, V. . Kudrjashov, R. . BALAKIN // Фінанси України. - 2019. - № 3. - C. 37-55.

Article original in Ukrainian (pp. 37 - 55)

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