The fiscal compact and national ownership

by István Benczes,

The fiscal rules of the Stability and Growth Pact on deficit and debt have become the focus of many scholarly works in the past 15 years. The study of domestic fiscal rules, however, has remained a neglected part of research. The new Treaty on the EMU’s Stability, Cooperation and Governance (TSCG) makes the analysis of domestic fiscal rules highly relevant since the Treaty requires member states to adopt a balanced budget rule. By analysing domestic fiscal rules in EU member states on the one hand and the fiscal compact on the other hand, the paper intends to show that without a strong political commitment and national ownership, no fiscal rule can be effective enough. Therefore, the new TSCG should be strengthened in this particular aspect.

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ABSTRACT

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