Economics, Econometrics and Finance
8 years ago

EU15 Faces Fiscal Sustainability Concerns Despite Overall Stability.

SSRN Electronic Journal
Fiscal Sustainability in the EU: A Panel Data Diagnostic
António Afonso, Christophe Rault

Paper Summary

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The article examines if the public finances in the EU15 countries were sustainable from 1970 to 2006. The researchers used advanced statistical methods to analyze government spending and revenue trends. The results show that while some countries faced fiscal sustainability issues, overall, the fiscal policy was sustainable for the EU15 countries as a whole during the entire period and in different sub-periods.