The debate on fiscal consolidation is dominated by controversies about the negative impact of consolidation on growth. This contribution shortly summarizes the discussion about links between fiscal consolidation and growth. In addition, common advice that is derived from arguments about the...

During the economic crisis of 2008 and 2009, governments in Europe stabilized their economies by means of fiscal policy. After decades of absence, deficit spending was used to counteract the heavy decline in demand. In Germany, public spending went partially into R&D subsidies in favor of small...

The process of fiscal consolidation, initiated at EU level, since the last decade are a necessity now, the situation is significantly deteriorating for most of the Member States, as a result there is the occurrence and manifestation of economic and financial crisis. Recovery and promote growth,...

In response to the recession, many European Countries, Italy included, are undertaking large spending cuts and tax hikes. This paper investigates whether the changes in the composition of public spending would hurt the long-run economic growth. If the composition of spending is strongly tilted...

On the background of the crisis, public finances rapidly deteriorated in many EU Member States struggling with economic recession. Therefore, fiscal consolidation was needed for improving public finances and turning them to a sustainable path. Authorities considered two main possible actions...

Turkey's performance in the current crisis shows that it has managed to weather the global stormy conditions relatively well and avoid collapsing into a full-fledged currency and financial crisis. On the face of it, one could conclude economic reforms introduced since 2001 have paid off and...