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Fiscal-budgetary responsibility and implications on the European budgetary framework in the context of the COVID-19 crisis

Author

Listed:
  • Mihaela Onofrei

    (Alexandru Ioan Cuza University, Iasi, Romania)

  • Anca Florentina Vatamanu

    (Alexandru Ioan Cuza University, Iasi, Romania)

  • Elena Cigu

    (Alexandru Ioan Cuza University, Iasi, Romania)

  • Florin Oprea

    (Alexandru Ioan Cuza University, Iasi, Romania)

Abstract

The aim of this paper is to analyze fiscal-budgetary responsibility and the implications for the European budgetary framework in the context of the COVID-19 crisis. The study incorporates retrospective analysis of the European institutional framework, presentation of concepts and typologies of institutional organization in direct relation to the fiscal responsibility. The research hypotheses are based on the demonstration of inconsistency in the European working framework, regarding budgetary fiscal responsibility, as well as on the foundation of the institutional levels of organization and the demonstration of the existence of warning indicators regarding the vulnerabilities of the budgetary framework. The results of the study confirm the working hypotheses. Therefore, there is a need to establish responsibility mechanisms, which allow the replacement of arbitrary rules with clear directions to be followed by policy makers, so that interference between different institutional levels directly impacts the coordinates of fiscal risk management. The path of combating an economic crisis caused by the COVID-19 pandemic involves coordination, responsibility and common frameworks for action, so that the test of European unity to be passed successfully. The study exemplifies the importance of perceiving fiscal risk in relation to specific vulnerabilities and reveals a number of challenges to fiscal responsibility in the context of the COVID-19 crisis.

Suggested Citation

  • Mihaela Onofrei & Anca Florentina Vatamanu & Elena Cigu & Florin Oprea, 2020. "Fiscal-budgetary responsibility and implications on the European budgetary framework in the context of the COVID-19 crisis," Journal of Financial Studies, Institute of Financial Studies, vol. 9(5), pages 24-34, November.
    • Handle: RePEc:fst:rfsisf:v:5:y:2020:i:9:p:24-34
    DOI: 10.6084/m9.figshare.13621304
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    References listed on IDEAS

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    More about this item

    Keywords

    fiscal-budgetary responsibility; fiscal risk; European budgetary framework; COVID 19 pandemic; economic crisis; fiscal institutions; policy makers;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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