Title: An enlarged EMU? The procedural sources of fiscal policy in the new Member States

Authors: C. Mulas-Granados, J. Onrubia, J. Salinas-Jimenez

Addresses: Oficina Economica del Presidente del Gobierno, Complejo de la Moncloa, Edif. Semillas, Madrid 28071, Spain. ' Facultad de Economicas, Universidad Complutense, Campus de Somosaguas, 28223 Pozuelo de Alarcon, Madrid 28223, Spain. ' Instituto de Estudios Fiscales and Universidad de Extremadura, Avda/Cardenal Herrera Oria 378, Madrid 28035, Spain

Abstract: Ten new countries joined the EU in 2004, and some of them will soon also join the euro. Since their incorporation to the single currency is subject to their fulfilment of the Maastricht criteria that current members already fulfilled in 1998, this paper describes and compares these fiscal adjustments. Because fiscal consolidations vary in their timing, their duration and their composition, the article explores these dimensions and presents a model that enables us to explain such variation. Some empirical evidence pointing to the relationship between budgetary procedures and the level of fiscal discipline is shown.

Keywords: EU enlargement; fiscal discipline; fiscal institutions; fiscal policy; European Union; euro; fiscal adjustment; new Member States; budgetary procedures.

DOI: 10.1504/IJPP.2006.009804

International Journal of Public Policy, 2006 Vol.1 No.3, pp.279 - 296

Published online: 14 May 2006 *

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