Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/2729
Authors: 
Lehment, Harmen
Year of Publication: 
2002
Series/Report no.: 
Kiel Working Paper 1098
Abstract: 
EU Member countries have shown different degrees of ambition to reach a budget position of ?close to balance or in surplus'. Differences in ambition can only partly be explained by the relative size of cyclical safety mar­gins or differences in the number of votes in the ECOFIN Council. It is also shown that in the medium run there is no evidence for a trade-off between budget consolidation and growth. Of the eight countries with the strongest reduction of structural budget deficits in the period 1992-2001, only one showed growth rates below the EU average. The other seven countries even managed to achieve higher growth rates than in the period 1974-91 during which structural deficits had increased.
Subjects: 
budget deficits
European Union
fiscal policy
JEL: 
E65
E61
Document Type: 
Working Paper

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