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Reforming Fiscal Governance (Andrle et al.)

Reforming fiscal governance in the European Union by Michal Andrle, John C. Bluedorn, Luc Eyraud, Tidiane Kinda, Petya Koeva Brooks, Gerd Schwartz and Anke Weber published by IMF (5/2015). “…This note discusses medium-term reform options to simplify the framework and improve compliance. Based on model simulations and practical considerations, it argues for moving to a two-pillar approach, with a single fiscal anchor (public debt-to-GDP) and a single operational target (an expenditure growth rule, possibly with an explicit debt correction mechanism linked) linked to the anchor.”

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