The evidence from several euro-area countries demonstrates the existence of a forecast bias in the budgetary process, which negatively affects fiscal performance. To remedy this bias, we suggest that forecasting should be assigned to an authority independent from the ministry of finance and the...

At the Informal Ecofin of 11 September 1999 in Turku, ministers and governors agreed to ask the Economic and Financial Committee to check whether the existing regulatory and supervisory structures in the EU can safeguard financial stability, particularly in the context of a rapidly changing...

The present report is the fourth report on structural reforms prepared by the Economic Policy Committee. It summarises the results of an annual country by country examination of economic policies, which the Committee is asked to carry out according to its statutes. The country examinations are a...

The studies' main aim is to investigate the effects of the EU-10 enlargement on price convergence within the Internal Market. It distinguishes between the opposite forces provided by: (1) the catching up effect of the EU-10, expected to lead to a rise in price levels; and (2) increased...

This paper proposes to examine whether and how the introduction of the euro changed the impact of taxes on the economy or influenced the direction of tax policy. The paper surveys potential theoretical channels through which tax policy and exchange rate regimes are interrelated (capital...

This paper examines market developments in venture capital and buyout investment in Europe and the United States, through the analysis of funds raised, investments and exits. It discusses the profitability differential of European venture capital investment in comparison with the United States...

In current practice, changes in the cyclically-adjusted budget balance (CAB) are generally interpreted as reflecting the effort of discretionary fiscal policy. This paper shows that such an interpretation is not a sufficiently accurate description of the behaviour of fiscal policy, and, in some...

The assessment and monitoring of the effects of various tax reforms in Member States has become a key policy concern in the Community. In the Presidency Conclusions of the Lisbon European Council on 23-24 March 2000, the European Council requested the Council and the Commission to assess "the...

Spatial issues have received renewed interest in economics following the development of the new economic geography. At the same time, there is a general concern that the process of European integration would lead to higher regional specialisation making regions more prone to adverse shocks and...

The paper examines consolidation episodes in the EU since 1970 with a view to shedding light on the factors that determine the success or failure of fiscal adjustment. Compared to the existing literature on successful fiscal consolidations we add a number of new dimensions. Two deserve...