Publication detail

Consolidation of Public Budgets: A Czech Argument

Author(s): doc. Ing. Ondřej Schneider MPhil., Ph.D.,
Type: Chapter in book
Year: 2003
Number:
ISSN / ISBN: ISBN 80-86732-00-2
Published in: Kabele, Mlcoch, Pscheidt (eds.): Konsolidace vládnutí a podnikání v České republice a v Evropské unii
Publishing place: Kabele, Mlcoch, Pscheidt (eds.): Konsolidace vládnutí a podnikání v České republice a v Evropské unii
Keywords:
JEL codes:
Suggested Citation:
Grants: The Czech Republic's Accession to the EU: Fiscal Policy Stratagem
Abstract: The Czech Republic is firmly on its way to the European Union. In this respect, it gradually loses its “transformation” peculiarities and becomes a mere standard market economy. While this process is to be welcome, it brings pressure on some lagging aspects of the Czech economy’s transformation. Where the Czech Republic lags most behind standards is the public finance domain. Whereby the surplus or balanced budgets were the pride of earl transformation years, late 1990’s oversaw a dramatic accumulation of deficits that peaked at 7% of GDP in 2002. The current budgetary position complicates the country’s expected entry to the EMU that is mandatory for new EU entrants. In this paper, we analyze the constitutional setting of the Czech public finances. We show that the Czech Republic’s institutions indicate a tendency towards higher public spending and higher budget deficits. We argue, therefore, that an institutional change is required to stabilize Czech public budgets. Several reform alternatives are then discussed and compared.
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