The Council called for a regular assessment and peer review of Member States' fiscal frameworks which will include a check list of desirable features of domestic fiscal frameworks, building on best practices and acknowledging differences in political, institutional and cultural contexts.
"The Council ACKNOWLEDGES that resilient and effective domestic fiscal frameworks play a crucial role in strengthening fiscal consolidation and sustainable public finances. In the current circumstances, the Council REITERATES the importance of their contribution to the fiscal exit strategies, the implementation of the Stability and Growth Pact and to the credibility of the corresponding fiscal commitments. The Council also EMPHASISES the contribution of fiscal frameworks to the sustainability of public finances and to the three pronged strategy to cope with fiscal challenges related to ageing populations.
2. The Council WELCOMES the report of the Commission on “Domestic Fiscal Frameworks: How National Fiscal Governance Can Contribute to Budgetary Consolidation over the Medium Term” and the issues note prepared by the EPC on “Strengthening Domestic Fiscal Frameworks”.
3. While the strengthening of national fiscal governance must take into account the political, institutional and cultural background of each country, the Council CONSIDERS that certain desirable features of resilient and effective domestic fiscal frameworks can be identified.
In light of their contribution to an efficient implementation of the Stability and Growth Pact, the Council CALLS FOR a regular assessment and peer review of Member States' fiscal frameworks drawing on:
- A check list of desirable features of domestic fiscal frameworks, building on best practices and acknowledging differences in political, institutional and cultural contexts;
- Member States' policy experiences in reforming fiscal governance, particularly of those countries having fiscal frameworks that have proved effective in budgetary discipline and macroeconomic stabilization; and
- Analysis of the impact of the crisis on existing frameworks and ongoing reforms.
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