• EU countries have developed the strongest global fiscal framework. They use three types of fiscal rules - budget rules setting limits on government structural deficits (typically 0.5% GDP), debt rules setting limits on debt-to-GDP-ratios (60%), and expenditure rules setting targets for the growth of government expenditures (based on the growth of potential GDP).
  • ...driven by monetary union. Eurozone countries have stronger fiscal frameworks. They all have at least a budget rule incorporated in their national legislatures. Some non-eurozone countries voluntarily opted to join the eurozone fiscal framework. Three non-eurozone countries, however, have no adequate fiscal rules at all.
  • Strength of the fiscal rules is highest in Italy and Spain. Bulgaria and Estonia are in third place. The weakest frameworks are present in the United Kingdom, the Czech Republic, and Hungary, which have no adequate fiscal rules at all.

The full report is available on ERA’s website.


Natalia Porokhova
Senior Director, Head of Sovereign Ratings and Forecasting Group
+7 (495) 139 04 90
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