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Coordination arrangements across government sub-sectors in EU Member States

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  • Georges Tournemire

Abstract

Coordination arrangements should ensure that fiscal policy is conducted in a consistent manner across the various public entities and sub-sectors of general government. This dimension has gained in relevance as recent fiscal governance reforms in the European Union have put a premium on sound coordination. Using information from the Commission Fiscal Governance database, the note identifies hard and soft coordination instruments and discusses their respective design and merits. Overall, it is found that subnational government is being equipped with specific fiscal rules in a growing number of Member States. Soft coordination mechanisms for their part are becoming more structured and results-oriented with in particular improved monitoring procedures. The note finally suggests a number of avenues to improve existing coordination mechanisms to integrate further domestic budgetary timelines and ensure a genuine involvement of subnational government within the annual budget cycle.

Suggested Citation

  • Georges Tournemire, 2014. "Coordination arrangements across government sub-sectors in EU Member States," European Economy - Economic Papers 2008 - 2015 517, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:ecopap:0517
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    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • 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
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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