Public finances and the new economic governance in the European Union

This book endeavors to evaluate how effectively the European Union's new economic governance has managed to regulate the fiscal policies of its member states. The authors highlight that the EU's flawed institutional framework exacerbated the adverse fiscal impacts during the most recent financial crisis. The analysis delves into the scope of fiscal consolidation carried out by member states, evaluating the implementation of austerity measures as a tool for financial stabilization, alongside an examination of what are termed 'non-Keynesian' effects of fiscal policies. An in-depth assessment has been conducted on how Germany, Great Britain, Hungary, and Poland have approached the discipline of public finances. The study also considers the unique experiences of other EU nations to identify both the strengths and weaknesses of the current strategies for fiscal consolidation. Through quantitative methods, the book analyzes the interaction between budgetary balance and various macroeconomic variables and assesses changes in the economic capabilities of member countries, shedding light on the processes of economic convergence within the EU.