Budgetary Consolidation in EMU.

There is a general consensus that monetary stability in Economic and Monetary Union (EMU) requires sustainable public finances of the member states. In order to maintain a high degree of sustainability in Stage III of EMU, attention might shift away from the numerical criteria regarding overall deficits and debts, and focus more on the quality of fiscal adjustments and of the institutions governing public finances in the member states. This study provides an empirical analysis of the budgetary consolidations in the EU member states to support and further develop that proposition.