Grant detail

The Czech Republic's Accession to the EU: Fiscal Policy Stratagem

Principal investigator: doc. Ing. Ondřej Schneider MPhil., Ph.D.
Description: The Czech Republic is expected to join the European Union in 2004. This will have significant implications, inter alia, for Czech fiscal policy. Despite the fact that the enlargement of the EU is coming closer and closer we are still lacking a comprehensive and well-structured analysis of the most relevant implications for Czech fiscal policy, its stance and overall philosophy. The lack of an in-depth analysis is a problem not only for the fiscal authority itself, but also for the CNB, which is having to make monetary decisions under substantially increased uncertainty in the medium term. This project tries to fill this gap in the following way. First of all, we will discuss the role and relevance of rules-oriented fiscal policy, its implications for long term fiscal sustainability and the origin, current situation and perspectives of the European Union's fiscal rules and procedures. The other parts of the project will have more of an empirical character. We will consolidate our knowledge of the analytical instruments used by the European Commission and the European Central Bank and apply them to the Czech fiscal context. We aim to answer the question of whether the European fiscal rules are flexible enough given the needs and character of the catching-up Czech economy. Last but not least, we would like to shed more light on a very frequently discussed issue: what might be the net financial position of the Czech Republic with respect to the EU budget. Given the unique relevance of fiscal policy to monetary policy considerations, the results of this project should provide us with a better knowledge base for the optimal co-ordination of fiscal and monetary policies. In both aspects---policy as well as empirical---we will rely on our previous work focusing on fiscal issues related to the transitional process in the Czech context.
Participation: Vladimir Bezdek (CNB), Ales Krejdl (MF CR)
Work in grant: Fiscal rules
EU budget and the Czech Republics net balance
Fiscal stabilisation
Web link:
Finance: Czech National Bank (ČNB)
End date: 12/2004

Consolidation of Public Budgets: A Czech Argument

Czech Public Budgets - Roots of the Crisis

The Europan Union Budget - Structure and Tensions





Patria Finance