№ 3/2018

Fìnansi Ukr. 2018 (3): 24–42

PUBLIC FINANCE MANAGEMENT

BOHDAN Tetiana ¹

¹NGO “Growford Institute”
OrcID ID : https://orcid.org/0000-0002-6133-5336

Fiscal policy coordination and limatation of government debt and deficit in the EU

The author examines the key rules and procedures of fiscal policy coordination in the European Economic and Monetary Union with a special emphasis on sustaining budget deficit and limiting government debt in member countries. In view of Ukraine’s high public debt burden (above 80% of GDP) and weak fiscal institutions (among which: outdated accounting practices, lack of clearly specified fiscal rules and only emerging medium-term fiscal planning), the issues under consideration are of special importance for Ukraine. The author analyses the evolution of the EU primary and secondary legislation related to fiscal policy surveillance, in particular, provisions of the Stability and Growth Pact and of the EU Regulations and Directive, which specify the tools of application of the Treaty on the Functioning of the European Union, as well as of the Stability and Growth Pact. The author presents the holistic mechanism of supranational regulation of the general government deficits and debts in the EU member countries, as well as ensuring compatibility of fiscal policy of the EU member countries with the EU’s guidelines. Conducted research is based on qualitative methods, most significant of which are observations and generalizations. Key findings and conclusions thereby derived, may be employed for a design of the core public finance reforms in Ukraine, that are envisioned by the EU-Ukraine Association Agreement. They also may be useful for elaboration of the Strategy for European Integration of Ukraine.

Keywords:fiscal policy coordination, EU regulations, deficit, government debt, multinational surveillance

JEL: F36, H62, H63, H87

BOHDAN T. . Fiscal policy coordination and limatation of government debt and deficit in the EU / T. . BOHDAN // Фінанси України. - 2018. - № 3. - C. 24-42.

Article original in Ukrainian (pp. 24 - 42)

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