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Forced Fiscal Regulation: Impact Factors and Efficiency

Author

Listed:
  • Butmalai Valentina

    (“Dunarea de Jos” University of Galati, Romania)

  • Săracu Alina-Florentina

    (“Dunarea de Jos” University of Galati, Romania)

  • Susanu Irina

    (“Dunarea de Jos” University of Galati, Romania)

  • Abedin Bahareh

    (Department of Executive Management, Faculty of Economic and Administrative Sciences, University of Mazandaran, Babolsar, Iran)

Abstract

Tax regulation issues have been the focus since the COVID-19 crisis and the subsequent EU energy crisis. From the Keynesian approach, the expansionary fiscal policy of states can contribute to stimulating aggregate demand and, as a consequence, economic growth, on the other hand, the post-crisis macroeconomic policy trend has become fiscal compression (budget consolidation), corresponding to the neoliberal paradigm. This policy has been actively promoted by the supranational institutions of EU, which, with the help of various instruments of fiscal regulation, have effectively imposed budgetary consolidation on member countries. Considering that the European Commission continues to urge countries to better the sustainability of their public finances and believes that the situation with the tax system is only safe in some EU countries, while in others, it finds significant imbalances, exceptionally high levels of public debt, which need to be corrected by the Stability and Growth Pact mechanisms, the relevance of this study is beyond doubt.

Suggested Citation

  • Butmalai Valentina & Săracu Alina-Florentina & Susanu Irina & Abedin Bahareh, 2024. "Forced Fiscal Regulation: Impact Factors and Efficiency," Valahian Journal of Economic Studies, Sciendo, vol. 15(1), pages 27-38.
    • Handle: RePEc:vrs:vaecst:v:15:y:2024:i:1:p:27-38:n:1003
    DOI: 10.2478/vjes-2024-0003
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    References listed on IDEAS

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    3. J. Boeckx & M. Deroose, 2016. "Monetary and fiscal policies in the euro area : independent but nevertheless connected," Economic Review, National Bank of Belgium, issue ii, pages 7-25, september.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    fiscal consolidation; budget deficit; SGP; compression efficiency; consolidation measures;
    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
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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