Roel Beetsma, ACES Governing Board Member, is a co-author of the report and member of the European Fiscal Board. The Report was presented by EFB Chair Niels Thygesen at the College of Commissioners meeting of September 11 and at the Council of the Ministers of Economics and Finance (ECOFIN) on September 14 in Helsinki.
Beginning this year EC President Jean-Claude Juncker asked the European Fiscal Board to draft a report for the European Commission about the necessity to reform the European Union's fiscal rules. This reform is one of the priority items of the Finnish EU presidency.
According to the EFB, fiscal rules in the Eurozone should give priority to sustainable debt reduction. At the moment, fiscal rules are too complex and have undesired effects. Furthermore, government measures aimed at stimulating economic growth should not be taken into account for expenditure ceilings, and the sanctions mechanisms for breaking budget rules should be changed.
Read here the European Fiscal Board’s advice to the President of the European Commission “Assessment of EU fiscal rules -- with a focus on the six and two-pack legislation” The report provides a comprehensive review of the functioning of the EU’s fiscal rules, in particular since the six and two-pack reforms in 2011 and 2013. It closes with a proposal for reform of the EU fiscal framework.
The European Fiscal Board (EFB) is an independent body mandated to advise the European Commission on the overall direction of fiscal policy of the euro area and to evaluate how the EU fiscal governance framework is implemented. It was formally established end 2015 and began operating shortly after its members were appointed in October 2016.
The main responsibilities of EFB are