The Role of the 'Quality of Public Finances' in the Context of the Reformed Stability and Growth Pact

6 Pages Posted: 8 Mar 2012

See all articles by Florian Höppner

Florian Höppner

affiliation not provided to SSRN

Christian Kastrop

Bundesministerium der Finanzen

Date Written: March 31, 2005

Abstract

Höppner and Kastrop discuss the issue of quality in public expenditure in the framework of the Stability and Growth Pact. Their starting point is the reform of the Pact that has taken place in 2005. They summarise the main problems that led to the reform and argue that fiscal rules based only on quantitative indicators rather than on economic analyses of fiscal policies could lead to incorrect policy recommendations and objectives. They point out that the problem is to translate the theoretically appealing concept of high-quality public finances into operational indications. To this end they suggest that the general structure of expenditure should be considered along with an assessment of the necessary structural reforms. Drawing up an agreed methodology to determine non-mechanistic assessments of fiscal positions should be the way forward. Such an agreement should lead to general policy guidelines agreed at European level.

Suggested Citation

Höppner, Florian and Kastrop, Christian, The Role of the 'Quality of Public Finances' in the Context of the Reformed Stability and Growth Pact (March 31, 2005). Available at SSRN: https://ssrn.com/abstract=2017727 or http://dx.doi.org/10.2139/ssrn.2017727

Florian Höppner (Contact Author)

affiliation not provided to SSRN ( email )

Christian Kastrop

Bundesministerium der Finanzen ( email )

Detlev-Rohwedder-Haus
Wilhelmstrße 97
Berlin, D-10117
Germany
00-49-30-22424310 (Phone)
00-49-30-22421867 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
19
Abstract Views
434
PlumX Metrics