In this thesis, I use a historical overview of fiscal policy in the EU to identify the effectiveness of the EU's fiscal framework in ensuring fiscal discipline.
In the thesis, I outline the key theoretical aspects of fiscal policy in the EU, followed by the legal basis. I also summarize the key changes to the EU fiscal framework and highlight the key advantages and shortcomings that arise from each change. I also identify compliance with fiscal rules based on historical data and give my views on fiscal rules in the EU in the past and in the future and assess the prospects for success of the new fiscal rules in the EU in remedying the record levels of debt in the EU.
In my thesis, I conclude that some Member States persistently violate fiscal rules, which is why the EU fiscal framework needs to be as robust as possible, while at the same time improving the enforcement of each individual rule system. The EU's fiscal rules must be a restraining mechanism that prevents Member States from creating macroeconomic risks for other Member States through excessive spending. At the same time, fiscal rules should be as clear as possible in order to ensure maximum coherence and should not be overly restrictive, as this ensures the highest degree of coherence in the long run.
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