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Showing posts from June 24, 2012

EU NEW FISCAL AUTHORITY FOR WEAK MEMBER STATES

This paper focuses on setting up new fiscal authority to manage compatible fiscal decentralisation and budgetary discipline in the EU Member States. The authority need to adopt a tough fiscal consolidation programme. The authority should be responsible for designing fiscal policy for all Member States with stricter rules, conscientious monitoring and enforcement mechanisms for the conduct of fiscal decentralisation and budgetary policy. If Member States does not implement or violate the fiscal authority law that Member State/States to be sued in the European Court of Justice. We cannot grow our economy without proper fiscal cooperation between Member States. So the fiscal authority must coach at least weak Member States how to implement effective fiscal policy so that crony driven economy can be turned into a competitive market based economy. EU established the provisions of the Stability and Growth Pact (SGP) to avoid excessive deficits of the Member States and take precise act