Should any budget surplus be immediately squandered? A commentary on the EU and Croatia fiscal stance assessment (CROSBI ID 263371)
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Ott, Katarina
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Should any budget surplus be immediately squandered? A commentary on the EU and Croatia fiscal stance assessment
The European Commission has released its Union fiscal stance assessment. On the basis of member states’ stability and convergence programmes and its spring 2017 economic forecast, the Commission takes a look at budgetary developments in 2016 and fiscal plans for the 2017 – 2020 period at the level of individual member states, the euro area and the Union as a whole.1 Of all EU member states, Croatia saw the sharpest decrease in budget deficit in 2016 ; however, the country continues to face significant public finance sustainability risks, particularly high overall public debt sustainability risk. It is a good thing, then, that the government is planning a budget deficit reduction, even a surplus, over the long-term. But in order to achieve these goals, the government should launch the necessary reforms and avoid indulging interest groups and ignorant, populist demagogues.
budget
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