Fiscal Policy Surveillance in Europe

MASSIMO BORDIGNON Professor of Economics, Catholic University of Milan, ItalyHANA POLACKOVA BRIXI World Bank, ChinaMARCO BUTI Director, Directorate-General for Economic and Financial Affairs, the European Commission, BelgiumLARS JONUNG Economic Advisor, the European Commission, BelgiumFILIP KEEREMAN Head of Unit, Directorate-General for Economic and Financial Affairs, the European Commission, BelgiumVINCENT KOEN Principal Economist, Organization for Economic Co-operation and Development (OECD), FranceJACQUES MÉLITZ Professor of Economics, University of Strathclyde, UKRUUD DE MOOIJ CPB Netherlands Bureau for Economic Policy Analysis and Professor of Economics, Erasmus University, The NetherlandsJONATHAN RODDEN Associate Professor, Massachusetts Institute of Technology, USALUDGER SCHUKNECHT Head, Fiscal Surveillance Section, European Central Bank, GermanyPAUL TANG CPB Netherlands Bureau for Economic Policy Analysis, The NetherlandsVITO TANZI Economic Advisor, Inter-American Development Bank, USATERESA TER-MINASSIAN Director, Fiscal Affairs Department, International Monetary Fund (IMF), USAPAUL JOSEPH VAN DEN NOORD Economics Department, Organization for Economic Co-operation and Development (OECD), FranceMAXWELL WATSON Economic Advisor, the European Commission, BelgiumERIK WIBBELS Associate Professor, University of Washington, USACHARLES WYPLOSZ Professor of Economics, Graduate Institute of International Studies, Switzerland

• List of Tables List of Figures Foreword Acknowledgments List of Contributors Introduction; P.Wierts, S.Deroose, E.Flores & A.Turrini PART 1: MEASUREMENT ISSUES IN BUDGETARY SURVEILLANCE Large and Unknown Implicit Liabilities: Policy Implications for the Eurozone; C.Wyplosz Fiscal Gimmickry in Europe: One-off Measures and Creative Accounting; V.Koen & P.J.van den Noord Non-discretionary and Automatic Fiscal Policy in the EU and the OECD; J.Mélitz Comment Part I; M.Buti PART II: FISCAL DECENTRALIZATION: ACHIEVING HARD BUDGET CONSTRAINTS Fiscal Decentralization: How to Harden the Budget Constraint; M.Bordignon Achieving Fiscal Discipline in Federations: Germany and the EMU; J.Rodden Business Cycles and the Political Economy of Decentralized Finance: Lessons for Fiscal Federalism in the EU; E.Wibbels & J.Rodden Comment Part II; T.Ter-Minassian PART III: ENLARGEMENT: FISCAL SURVEILLANCE ON THE ROAD TO EMU Financial Stability During Convergence: What can Fiscal Policy Contribute? M.Watson Contingent Liabilities in New Member States; H.P.Brixi Comment Part III; F.Keereman PART IV: PUBLIC FINANCES, EFFICIENCY AND EQUITY: WHAT ARE THE TRADE-OFFS? Reforming Public Expenditure in Industrialised Countries: Are There Trade-Offs? L.Schuknecht & V.Tanzi Reforming the Public Sector in Europe: Reconciling Equity and Efficiency; R.de Mooij & P.Tang Comment Part IV; L.Jonung Notes Bibliography