The Capacity of National IFIs to Play an Enhanced Role in EU Fiscal Governance
In the context of ongoing EU Economic Governance Review, many economists and researchers have called for a stronger role for national IFIs in the future EU fiscal framework. National IFIs help to reduce procyclicality, increase national ownership and strengthen fiscal frameworks.
The paper finds that overall EU IFIs appear to have good capacity to carry out a wide range of tasks and play an enhanced role, but there is some scope to ensure that all institutions are able to perform in line with EU peers in all areas. The work of many IFIs would be supported by better access to data and information, as well as sufficient and stable resources. To enhance the role of EU IFIs in the future EU fiscal framework, all national IFIs need to have the capacity to play their role.
This paper builds on a new anonymous survey of the 29 IFIs from 25 EU countries conducted by the Network self-assessing the capacity to undertake a range of tasks around an enhanced role in EU fiscal governance and barriers institutions face.