Strengthening Medium-Term Budgetary Frameworks
The Network of EUIFIs held a 1-day workshop on medium-term budgetary frameworks in the EU member states - current practices in the EU, consequences for IFIs and considerations how to improve them further Subsequently, the Network prepared the following paper summarizing its position.
The aim of this paper is to propose steps towards contributing to reinstate a dual – procedural as well as rule-based – approach to medium-term budgeting in EU Member States. It identifies action that can be taken to reinforce the importance of national institutions as well as national public finance management procedures and practices in the functioning of the national and EU fiscal framework.
Whilst recognizing that the bulk of the improvement in practice must come from solutions at the Member State level, and that national IFIs also have a relevant role in promoting a medium-term approach to fiscal policy, it calls for a comprehensive review by the European Commission to provide impetus for national-level dialogue and initiatives concerning MTBFs. On the basis of this review, the Network sees the scope for an increased role for the evaluation of the soundness of MTBFs by the Commission as a part of the EU Semester.
See the full text of the paper for more information.