This paper tackles the question of fiscal sustainability in current times of fiscal and economic crisis. We analyse how much space do fiscal policies have in EU member states for battling the crisis under the assumption that they want to remain fiscally sustainable. We use a derivative from...

The paper assesses characteristics of labour taxation, employment and unemployment rate in the OECD and in the EU Member States and analyses relationship between tax wedge and labour market outcomes, i.e., employment and unemployment rate. The empirical analysis shows that the non-EU OECD...