The Fiscal Position of Eurozone Countries under the influence of the global economic crisis

The European Monetary Union (EMU), eleven years after its establishment, is facing its the most difficult period. The crisis revealed a fact that the European Monetary Union joined together very heterogonous countries with different economic developments and with different approaches to fulfilling the conditions and following the principles of the European Monetary Union functioning. The criteria for defining fiscal discipline are represented by Maastricht convergence criteria before a country enters the Eurozone and by the existence and the function of the Stability and Growth Pact for countries, which participate in the EMU project. Shortterm and often purpose-made fulfillment of fiscal criteria supported by the tools of monetary and fiscal policies together with unsuitable control and sanction mechanism decrease the effectiveness of the fiscal rules. The fiscal position of EMU (EU) countries in 2009 is the worst since 1970 and it shows that without long-term sustainable public finances of the participating countries the existence and functioning of the single currency is threatened.