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Reforming Government Subsidies in the New Member States of the European Union

Author

Listed:
  • Mr. Alex Segura-Ubiergo
  • Miss Taline Koranchelian
  • Mr. Carlos Mulas-Granados

Abstract

Subsidy reform has been a key component of the pre-accession reform agenda of the 10 new member states that joined the EU in 2004 (EU-10). During the pre-accession period, these countries had to undertake a number of important structural reforms in their economies. One of the most critical reforms was to reduce, and in some cases, eliminate their subsidy programs. This paper analyzes how key subsidy reforms (in state aid to enterprises, agriculture, energy, and transportation) were carried out in the EU-10 during 1995–2005, and explains observed variations across types of subsidies and across countries. Based on an extensive qualitative analysis, the paper draws lessons for future successful reforms of government subsidies. 32B

Suggested Citation

  • Mr. Alex Segura-Ubiergo & Miss Taline Koranchelian & Mr. Carlos Mulas-Granados, 2008. "Reforming Government Subsidies in the New Member States of the European Union," IMF Working Papers 2008/165, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2008/165
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    References listed on IDEAS

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    Cited by:

    1. Bacila Nicolae, 2015. "Public Policies To R&D In Romania In The Context Of The Eu State Aid Policy," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 133-141, July.
    2. Ronald Albers & Marga Peeters, 2011. "Food and Energy Prices, Government Subsidies and Fiscal Balances in South Mediterranean Countries," European Economy - Economic Papers 2008 - 2015 437, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    3. Marga Peeters & Ronald Albers, 2013. "Food Prices, Government Subsidies and Fiscal Balances in South Mediterranean Countries," Development Policy Review, Overseas Development Institute, vol. 31(3), pages 273-290, May.
    4. repec:pra:mprapa:37705 is not listed on IDEAS
    5. Áron Kiss, 2009. "Coalition politics and accountability," Public Choice, Springer, vol. 139(3), pages 413-428, June.
    6. Voszka, Éva, 2009. "Versenybarát és versenykorlátozó állam - válság előtt, válság közben [The pro-competition and a competition-restricting state - before and during the crisis]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 913-932.
    7. Nicolae Bacila, 2015. "State aid to R&D in Central and Eastern Europe in the context of the Europe 2020 strategy," National Strategies Observer (NOS), Institute for World Economy, Romanian Academy, vol. 1.
    8. Siham MATALLAH & Lahouari BENLAHCENE & Amal MATALLAH, 2022. "Government subsidies and income inequality in Algeria: An analytical and empirical study," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(633), W), pages 147-162, Winter.

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