Balkan Candidate Countries Running for Fiscal Consolidation: Legal Frameworks vs. Economic Results
DOI:
https://doi.org/10.2478/cer-2019-0020Keywords:
EU Fiscal Compact, fiscal consolidation, budget deficit, public debt, Balkan candidatesAbstract
The subject of this paper is four Balkan countries (Albania, Serbia, Macedonia, and Montenegro) that are determined to join the European Union. More particularly, it looks at their work towards accomplishing the political, legal and economic requirements for the EU. Thus, the legislation with the EU Fiscal Compact is the prime focus. Methodologically, the research is based on an assessment of fiscal and monetary legal documents, evaluating the stages of accomplishing the harmonization with the EU’s conditions. Further, cross‑section analyses are made by in putting selected indicators; additionally, the authors compare the four countries’ achievements. The EU’s rigorous fiscal rules are being quietly bypassed, but more frequently by existing member states than the candidate states; this statement is founded on legal and economic arguments, with mathematical estimations. Consequently, the authors question the political courage and financial capacity of the examined countries to cope with the fiscal compact of the superior EU 28 members. The answers are supported with numerous analyses of EU Reports for each country, as well as tables and figures that compare the states’ results and economic achievements vs. EU fiscal consolidation rules. The EU 28 average is givenin addition as a comparison. The conclusion gives across analysis between the four countries and the EU 28 member states, with accompanying argumentation to the main statement about the legal and economic developments of the examined Balkan countries as well as a future prognosis.
Downloads
References
Bickerton, J., Hodson, D., Puetter, U. (2015), The New Intergovernmentalism: States and Supranational Actors in the Post‑Maastricht Era, Chapter 7, Oxford University Press, Oxford.
Google Scholar
Burret, T., Schnellenbach, J. (2013), Implementation of the Fiscal Compact in the Euro Area Member States, German Council of Economic Experts, Working Paper 08/2013.
Google Scholar
Calliess, C. (2012), From Fiscal Compact to Fiscal Union? New Rules for the Eurozone, Cambridge Yearbook of European Legal Studies, Vol. 14.
Google Scholar
Calovic Markovic, V., Maras, V., Maskovic, A. (2017), Montenegro Public Debt Analyses, Balkan Monitoring Public Finances.
Google Scholar
Djurovic‑Todorovic, J., Djordjevic, M. (2015), Results of Fiscal Consolidation in Republic of Serbia, Procedia Economics and Finance 19.
Google Scholar
Durmishi, A., Patonov, N. (2016), Albania’s Fiscal Governance: A Good Example in EU Perspective, “Journal of International Relations”, Faculty of International Relations, University of Economics in Bratislava, Volume XIV, Issue 2.
Google Scholar
ECB (2000), The Eurosystem and the EU enlargement process, ECB Monthly Bulletin.
Google Scholar
European Commission, 2016 Macedonia Report, COM 2016.
Google Scholar
European Commission, Communication from the Commission, The Fiscal Compact: Taking Stock, Brussels, 22.2.2017 C(2017) 1200 final.
Google Scholar
European Commission, Montenegro 2016 Report, COM 2016.
Google Scholar
European Commission, Report from the Commission presented under Article 8 of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, 22.2.2017, C(2017) 1201 final.
Google Scholar
Hristovska, B., Spasova, T. (2017), Analyses of Public Debt in Republic of Macedonia, Balkan Monitoring Public Finances.
Google Scholar
Jonas, J. (2010), Fiscal Objectives in the Post IMF Program World: The Case of Albania, IMF Working Paper WP/10/77.
Google Scholar
Kalas, B., Andrasic, J., Pjanic, M. (2016), Aspects of Fiscal Consolidation: Evidence from Serbia, The European Journal of Applied Economics, 13 (2).
Google Scholar
Klepsvik, K., Emery, R., Finn, B., Bernhard, R. (2014), Budgeting in Albania, OECD Journal on Budgeting, OECD Publishing, Vol. 2013/2.
Google Scholar
Maksimovska Stojkova, A., Zafiroski, J., Neshovska Kjoseva, E. (2018), Coping with the EU Fiscal Compact: Cross Section Analysis of the Legal Framework and Economic Results by the Candidate Balkan Countries, JOR: Jahrbuch fur Ostreht, Band 59, ISSN 0075–2746, Verlag C.H. Beck, IOR Munchen.
Google Scholar
Ministry of Finance of Albania (2017), Public Financial Management Strategy 2014–2020: 2016 Monitoring Report, Government of Albania.
Google Scholar
Treaty on European Union, Official Journal C 191, 29.7.1992.
Google Scholar
Treaty on Stability, Coordination, and Governance in the Economic and Monetary Union, agreed at the EU summit of 30 January 2012, signed on 2 March by the Heads of State or Government of all EU countries, with the exception of the United Kingdom and the Czech Republic.
Google Scholar
World Bank Group Partnership (2015), Albania – Program Snapshot, 2015, World Bank.
Google Scholar
Zafiroski, J. (2014), The Need for Fiscal Rules in the Constitution of the Republic of Macedonia, Pravnik, No. 271.
Google Scholar
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.