engleski

Harmonization of the EU Fiscal Policy

The paper analyzes the issues of harmonization, co-ordination and competitivness of fiscal policy. Tax reduction, implemented by European governments, produces some consequeces for other countries of European economic and monetary union. This situation is recognized under the term "externals". Its consequences can be negative and that fact arises repeated appeal for the harmonization of european fiscal legislation. However, the harmonization cannot be utilized by itself. Geographical distance between the centres of European Union, as well as the diversity of tax system, should be taken in account. The best strategy suggests linking of competitiveness, harmonization and fiscal co-ordination. Therefore, it is hard to implement a common fiscal policy to the market economy such is the European Union. Yet, it is possible to accept some principles which would lead to an optimal tax system through the fiscal reform which is currently being implemented in the majority of EU countries.

Fiscal policy; EU; harmonization; fiscal reform

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