In view of the fact that extensive tax relief measures have been envisaged for the tax reform of 2004-05, and since the economy continues its modest growth rate, the federal government decided to postpone its goal of achieving a "zero deficit" beyond 2007.

In the current negotiations about the European Union’s next medium-term Multiannual Financial Framework (MFF) for the period 2021 to 2027, the system of own resources financing EU expenditures plays a relatively important role.

To fulfil their tasks, governments rely on public expenditures and taxes. Both influence the incentives and shape the decisions and actions of private economic agents. As governments resort to both instruments simultaneously, their combined theoretical impact on economic performance is a priori...