To maintain economic stability of entire European union economy and efficient
distribution of public funds in the circumstances of financial and economic crisis, the
major task was adopting rigorous measures for restricting fiscal policies.
In my Master's thesis I have examined the impacts of austerity measures and the
influences of adopted fiscal rules on the budgets of selected European countries. Along
with Slovenia I choosed Germany as a leading economy in Europe, Slovenia's
neighbouring countries Italy, Austria, Croatia and also Spain and Greece, as the countries,
which had already received financial aid from European Union. With interpretation and
analysis of primary and secondary sources I examined the nature and effects of different
kinds of measures as to reduce public spending as well as fostering economic growth,
competitiveness and employment. I did a multi-year analysis, compared the fluctuation of
public debts and fiscal deficits in the individual Member States and described the legal
framework that governs the area of public finances. I compared the results with
international studies that stress in particular the negative effects of austerity measures
and examined the reasons for the debt crisis and the lack of social dialogue in the
shrinkage of public funds spending.
I continued to review budgetary reforms in terms of public sector accounting and
analysed application of international accounting standards and presented the use of
transparent public sector accounting on the principle of accrual accounting. On the basis
of these results, I found that saving measures had some impact on the reduction of the
fiscal deficit, but they had not eliminated the public debt. For more efficient allocation and
use of public resources I proposed the adoption and implementation of additional internal
and external controls. Furthermore, I proposed to measure the efficiency of the entire
public sector and to sanction failure to comply with legislation. Along with that I proposed
to evaluate public services and to increase control over economic subjects that cooperate
with public sector.
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