‘The Troika Is Dead, Long Live the Domestic Troikas?’: Varieties of Technocracy and the Diffusion of National Fiscal Councils in the European Union: Agents, Trustees or Orchestrators of Fiscal Discipline?
TARN Working Paper No. 3/2018, June 2018
23 Pages Posted: 3 Jul 2018
Date Written: June 25, 2018
This article shows that the troika institutions — the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) — formed a technocratic consensus about the desirability of establishing national fiscal councils in the European Union (EU). Considerable disagreement existed, however, with regards to their design features. Each institution promoted a distinct mode of indirect governance by ranking national fiscal councils depending on their adopted governance model (agent, trustee or orchestrator). This persuasion through entrepreneurial bench- marking constitutes an important mechanism by which member states were nudged to adopt a distinct fiscal council model. Preference heterogeneity among the troika members ultimately prevented the spread of a one-size-fits-all fiscal council in the EU.
Keywords: fiscal policy, independent fiscal councils, indirect governance, international organisations, orchestration
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