The Austrian Consolidation Program

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "The Austrian Consolidation Program 2012-2016"

Transcription

1 The Austrian Consolidation Program With the consolidation program the Austrian federal government is setting the course for a structural and sustainable consolidation of the federal budget. In 2016 the general government budget according to the System of National Accounts (Maastricht-definition) will be balanced. In 2011, the preliminary general government Maastricht-deficit was at 3.3% of GDP. The structural deficit of the general government will reach 0.6% of GDP in The debt level will increase to 75.4% in 2013 and then fall to 71% of GDP in Solid public finances are a necessary precondition for economic growth, for new jobs, and for social stability. Therefore, the federal government decided to stop the long-lasting trend of increasing public debt. It is not acceptable to limit the room for manoeuvre in budgetary terms for future generations by ever-increasing public debt. The federal government will therefore create budgetary space to invest into the future and decrease the fiscal burdens for citizens and business. This is why there is no way around a sound and comprehensive budgetary consolidation program. The three main targets of the Austrian federal government s budgetary and economic policies are the following: Achieving a balanced budget by 2016 and ensure long-term sustainability by decreasing the debt ratio; Fostering investments in the areas of education, university, R&D and infrastructure to support growth and employment; Accelerating structural reforms in public administration, competition policies and in labor markets. To balance public finances in a comprehensive way, the Austrian federal government agreed upon a consolidation program for The overall volume of this program will be 26.5 bn Euro bn Euro will be contributed by the federal government, 1.4 bn Euro by the social insurance system, and 5.2 bn Euro by states and municipalities.

2 This austerity package is: Socially balanced as all groups of society contribute to the consolidation; Economic growth and investments won t be constrained; Jobs will be preserved; Urging problems will be faced (reforms in the pensions, subsidies, public administration, and in the health care sector); Consolidation is focused on the expenditure side (three quarters), whereas only one quarter will be consolidated on the revenue side. The main areas of expenditure cuts will be in public administration, pension system, unemployment insurance system, health care sector and in public companies and subsidies. Public administration including public servants: Pay freeze in 2013 Only moderate pay increases in 2014 Hiring freeze (exception: education, police, and judiciary services) Cutting of running costs (discretionary spending) Merger of administrative entities (i.e. closing of military hospitals) Altogether, public administration will contribute 2.5 bn Euro to the consolidation program. Pension and unemployment insurance system Only moderate increases for pensions in 2013 and 2014 Measures to increase factual retirement age (for instance by increasing the eligibility criteria for early retirements) Measures to reduce disability pensions: No early retirement below the age of 50 Measures to re-integrate employable people into the job market Stricter rules for allowances for part-time workers before retirement Harmonization of pension law for commercial and agricultural businesses Increase of social insurance contributions Altogether, the reforms in the pension and unemployment insurance system will contribute 7.3 bn Euro to the consolidation program.

3 Health care sector Reform of the compulsory social insurance system Reform of the hospital sector Expenditures should not increase faster than GDP By 2016, these measures will add up to about 3.4 bn Euro. Public companies and subsidies Reduction of costs at the Austrian Federal Railway (Infrastructure and operational costs) Measures to decrease early retirement in the Austrian Federal Railway Reform of subsidies in general Altogether, 2.6 bn Euro will be saved in the area of public companies and subsidies. With regards to the revenue side (taxes), tax evasion will be made more difficult and the tax bases will be increased. The main measures in the fiscal area are the following: Tax on income after re-zoning of property and taxes on real estate and immovable property sales Restrictions on group taxation laws Value added tax: Stricter rules for construction projects Value added tax: extension of VAT deductions (above all for immovable property) Abolishing of the mineral oil tax privileges for busses, railway vehicles, and for farmers Additional income tax for high incomes by decreasing the tax privileges for the 13 th and 14 th salary Financial transaction tax starting in 2014 Taxes on capital gains on Austrian bank accounts and investment portfolios in Switzerland Reduction of tax expenditures for housing savings schemes and private pension insurance

4 These additional taxes will add between 1.8 and 2 bn Euro a year between 2013 and At the same time, proactive measures to support Austria as a business location and ensure Austria s future will be introduced or sustained: Global budgets for universities will increase starting from 2013 by 250 m Euro a year. In the education area budgets will increase by about 300 m Euro annually. The increases for universities and all-day schooling already approved in 2010 (about 80 m Euro each) will be sustained. Subsidies for research will be added up by 100 m Euro a year up to The long-time care fund will financed until Subsidies for energy saving measures for housing will be sustained at the current level of 100 m Euro annually. States and municipalities will also play their part in the consolidation program. They fully support the objectives of the federal government. Their financial share of the consolidation is agreed at 5.2 bn Euro. The legal basis for the whole consolidation program will be laid down in the law accompanying the federal medium-term expenditure framework law. Further changes will be incorporated into the annual budget laws. The consolidation package will have little negative effects on growth, and will increase growth in the medium- to long-term. This will help Austria sustain its position as an attractive business location. The potential for growth in Austria will be enhanced: Labor force potential will increase by higher education and the planned measures in the pension area. Higher efficiency will be reaped by different measures of administrative reforms. Therefore, the decreasing public expenditure quota will improve Austria s position as a business location, as investors and employees won t have to include future tax increases into their calculations. On the revenue side, the quality of Austria as a business location and the purchasing power will be ensured. The main focus is on increasing the tax bases. Tax evasion will be made more difficult, which distributes the burden of consolidation fairly. Higher tax fairness will further increase acceptance of the tax system and social cohesion.

5 The consolidation package is an important step forward to implement the new debt brake rule already approved in December This debt brake rule calls for a balanced federal budget without new debt. In practice, the federal government will have to decrease the structural federal deficit to 0.35% of GDP by 2017 (General Government: 0.45% of GDP) and then stick to this limit. By this strict limit on deficits the debt-to-gdp ratio will fall in the medium-term as well. The limit on deficits can be adjusted according to the economic situation, and therefore, this rule gives space for anti-cyclical budgetary policies. With this debt brake rule the federal government complies with the tightened regulations of the European Stability and Growth Pact, which makes arrangements for balanced budgets of the general government in the medium term. Consolidation Programme Main Indicators in % of GDP Maastricht-Deficit General Government -3,3-3,0-2,2-1,5-0,6-0,1 of which Central Government -2,8-2,5-1,8-1,3-0,6-0,2 Structural Deficit General Government -3,1-2,6-1,9-1,5-0,9-0,6 of which Central Government -2,5-2,1-1,5-1,3-0,8-0,6 Public Debt 72,2 74,8 75,4 74,7 73,1 71,0

Recommendation for a COUNCIL RECOMMENDATION. on Poland s 2014 national reform programme

Recommendation for a COUNCIL RECOMMENDATION. on Poland s 2014 national reform programme EUROPEAN COMMISSION Brussels, 2.6.2014 COM(2014) 422 final Recommendation for a COUNCIL RECOMMENDATION on Poland s 2014 national reform programme and delivering a Council opinion on Poland s 2014 convergence

More information

Recommendation for a COUNCIL RECOMMENDATION. on the 2015 National Reform Programme of Portugal

Recommendation for a COUNCIL RECOMMENDATION. on the 2015 National Reform Programme of Portugal EUROPEAN COMMISSION Brussels, 13.5.2015 COM(2015) 271 final Recommendation for a COUNCIL RECOMMENDATION on the 2015 National Reform Programme of Portugal and delivering a Council opinion on the 2015 Stability

More information

4/9/2015 DAY 1: GROUP 1. Group 1. Albania. Armenia. Bosnia and Hercegovina. Croatia. Montenegro. Romania. Serbia

4/9/2015 DAY 1: GROUP 1. Group 1. Albania. Armenia. Bosnia and Hercegovina. Croatia. Montenegro. Romania. Serbia DAY 1: GROUP 1 1 Group 1 Albania Armenia Bosnia and Hercegovina Croatia Montenegro Romania Serbia 2 1 Romania: Reduction of VAT on basic goods Fiscal lottery with the aim of fiscal discipline improvement

More information

6 Quality of Public Finances Revenues and Expenditures

6 Quality of Public Finances Revenues and Expenditures 6 Quality of Public Finances Revenues and Expenditures 6.1 The Government s Strategy In 2003, the Czech government launched a public finance reform focusing on fiscal consolidation and elimination of the

More information

Recommendation for a COUNCIL RECOMMENDATION. on the Netherlands 2012 national reform programme

Recommendation for a COUNCIL RECOMMENDATION. on the Netherlands 2012 national reform programme EUROPEAN COMMISSION Brussels, XXX COM(2012) 322 PROVISIONAL VERSION Recommendation for a COUNCIL RECOMMENDATION on the Netherlands 2012 national reform programme and delivering a Council opinion on the

More information

Hungary. 1. Economic situation

Hungary. 1. Economic situation 2. COUNTRY NOTES: HUNGARY 125 1. Economic situation has faced considerable challenges to regain fiscal credibility. After almost a decade of persistent, high fiscal deficits and the building up of external

More information

UNITED NATIONS INDEPENDENT EXPERT ON THE QUESTION OF HUMAN RIGHTS AND EXTREME POVERTY

UNITED NATIONS INDEPENDENT EXPERT ON THE QUESTION OF HUMAN RIGHTS AND EXTREME POVERTY UNITED NATIONS INDEPENDENT EXPERT ON THE QUESTION OF HUMAN RIGHTS AND EXTREME POVERTY Questionnaire JAN/2011 Post-crisis adjustment and fiscal consolidation processes (2010 onwards) 1. Has your country

More information

COMMISSION STAFF WORKING DOCUMENT. Analysis of the draft budgetary plan of ITALY. Accompanying the document COMMISSION OPINION

COMMISSION STAFF WORKING DOCUMENT. Analysis of the draft budgetary plan of ITALY. Accompanying the document COMMISSION OPINION EUROPEAN COMMISSION Brussels, 15.11.2013 SWD(2013) 606 final COMMISSION STAFF WORKING DOCUMENT Analysis of the draft budgetary plan of ITALY Accompanying the document COMMISSION OPINION on the draft budgetary

More information

STABILITY PROGRAMME 2014-2017

STABILITY PROGRAMME 2014-2017 STABILITY PROGRAMME 2014-2017 COUNCIL OF MINISTERS APRIL 30 2014 Stability Programme 2014-2017 The Council of Ministers has approved today the referral to Brussels of: The Stability Programme 2014-2017,

More information

Structural Reform and Medium-Term Economic and Fiscal Perspectives - FY2004 Revision

Structural Reform and Medium-Term Economic and Fiscal Perspectives - FY2004 Revision Structural Reform and Medium-Term Economic and Fiscal Perspectives - FY2004 Revision January 21, 2005 Cabinet Decision 1. About FY2004 Revision 1 Despite recent slack movement observed in certain areas,

More information

The reform of the Hungarian pension system (A reformed reform)

The reform of the Hungarian pension system (A reformed reform) The reform of the Hungarian pension system (A reformed reform) Focus The objective of the comprehensive pension reform currently under way in Hungary is to return to the two-pillar pension system, based

More information

Greece. 1. Economic situation

Greece. 1. Economic situation 2. COUNTRY NOTES: GREECE 119 1. Economic situation The Greek economy is in a recession in the wake of the economic and sovereign debt crisis, exacerbated by the impact that austerity measures are having

More information

COMMISSION OPINION. of XXX. on the Draft Budgetary Plan of ITALY

COMMISSION OPINION. of XXX. on the Draft Budgetary Plan of ITALY EUROPEAN COMMISSION Brussels, XXX [ ](2013) XXX draft COMMISSION OPINION of XXX on the Draft Budgetary Plan of ITALY EN EN COMMISSION OPINION of XXX on the Draft Budgetary Plan of ITALY GENERAL CONSIDERATIONS

More information

TAX FREEDOM DAY IN SPAIN 2016 REPORT

TAX FREEDOM DAY IN SPAIN 2016 REPORT TAX FREEDOM DAY IN SPAIN 2016 REPORT How many taxes does an average Spaniard pay during his life? We consider the case of a taxpayer who enters the jobs market at age 16 and slowly builds a professional

More information

Recommendation for a COUNCIL RECOMMENDATION. on the 2016 national reform programme of France

Recommendation for a COUNCIL RECOMMENDATION. on the 2016 national reform programme of France EUROPEAN COMMISSION Brussels, 18.5.2016 COM(2016) 330 final Recommendation for a COUNCIL RECOMMENDATION on the 2016 national reform programme of France and delivering a Council opinion on the 2016 stability

More information

A BIPARTISAN PLAN TO REDUCE OUR NATION S DEFICITS EXECUTIVE SUMMARY

A BIPARTISAN PLAN TO REDUCE OUR NATION S DEFICITS EXECUTIVE SUMMARY A BIPARTISAN PLAN TO REDUCE OUR NATION S DEFICITS EXECUTIVE SUMMARY This bipartisan, comprehensive, and balanced plan consistent with the recommendations of the Bowles-Simpson fiscal commission that will:

More information

DECISIONS. L 145/6 Official Journal of the European Union 11.6.2010

DECISIONS. L 145/6 Official Journal of the European Union 11.6.2010 L 145/6 Official Journal of the European Union 11.6.2010 DECISIONS COUNCIL DECISION of 10 May 2010 addressed to Greece with a view to reinforcing and deepening fiscal surveillance and giving notice to

More information

Un anno di governo appunti di viaggio L analisi economica

Un anno di governo appunti di viaggio L analisi economica Un anno di governo appunti di viaggio L analisi economica Italy and the euro area crisis: basic facts No major imbalances aside from high debt/gdp; growth can rapidly go back to potential Low household

More information

Recommendation for a COUNCIL DECISION. abrogating Decision 2009/589/EC on the existence of an excessive deficit in Poland

Recommendation for a COUNCIL DECISION. abrogating Decision 2009/589/EC on the existence of an excessive deficit in Poland EUROPEAN COMMISSION Brussels, 13.5.2015 COM(2015) 243 final Recommendation for a COUNCIL DECISION abrogating Decision 2009/589/EC on the existence of an excessive deficit in Poland EN EN Recommendation

More information

30.3.2010 Official Journal of the European Union L 83/13

30.3.2010 Official Journal of the European Union L 83/13 30.3.2010 Official Journal of the European Union L 83/13 COUNCIL DECISION of 16 February 2010 giving notice to Greece to take measures for the deficit reduction judged necessary in order to remedy the

More information

Fiscal policy and pension expenditure in Portugal

Fiscal policy and pension expenditure in Portugal Fiscal policy and pension expenditure in Portugal Cláudia Rodrigues Braz 1 1. Introduction From the end of the 1990s until 2005 (with a break in 2002), there was a gradual deterioration in the structural

More information

THE PENSION SYSTEM IN ROMANIA

THE PENSION SYSTEM IN ROMANIA THE PENSION SYSTEM IN ROMANIA 1. THE PENSION SYSTEM MAIN FEATURES The pension system in Romania has undergone numerous reforms over the recent years, aimed at improving the sustainability of the system

More information

Recommendation for a COUNCIL OPINION. on the updated convergence programme of the Czech Republic, 2009-2012

Recommendation for a COUNCIL OPINION. on the updated convergence programme of the Czech Republic, 2009-2012 EUROPEAN COMMISSION Brussels, SEC(2010) 344 Recommendation for a COUNCIL OPINION on the updated convergence programme of the Czech Republic, 2009-2012 EN EN EXPLANATORY MEMORANDUM 1. GENERAL BACKGROUND

More information

Recommendation for a COUNCIL RECOMMENDATION. on the 2015 National Reform Programme of Slovenia

Recommendation for a COUNCIL RECOMMENDATION. on the 2015 National Reform Programme of Slovenia EUROPEAN COMMISSION Brussels, 13.5.2015 COM(2015) 273 final Recommendation for a COUNCIL RECOMMENDATION on the 2015 National Reform Programme of Slovenia and delivering a Council opinion on the 2015 Stability

More information

AUSTRIA: Pension Projections 2004-2050

AUSTRIA: Pension Projections 2004-2050 AUSTRIA: Pension Projections 2004-2050 1. Pension System: Overview 1.1 General Structure of the System The Act on the Harmonisation of Austrian Pension Systems came into effect on 1 January 2005. The main

More information

Economic Policy Challenges for Belgium GERT PEERSMAN STIJN VAN NIEUWERBURGH (NYU, NBER, CEPR)

Economic Policy Challenges for Belgium GERT PEERSMAN STIJN VAN NIEUWERBURGH (NYU, NBER, CEPR) Economic Policy Challenges for Belgium 1 GERT PEERSMAN STIJN VAN NIEUWERBURGH (UGENT) (NYU, NBER, CEPR) Some Unpleasant Belgian Fiscal Arithmetic Some Belgian politicians believe we can just eliminate

More information

The Cypriot Pension System: Adequacy and Sustainability

The Cypriot Pension System: Adequacy and Sustainability Cyprus Economic Policy Review, Vol. 6, No. 2, pp. 49-58 (2012) 1450-4561 49 The Cypriot Pension System: Adequacy and Sustainability Philippos Mannaris Aon Hewitt Abstract The fundamental objective of pension

More information

Fall 2014 UPDATE ON QUÉBEC S ECONOMIC AND FINANCIAL SITUATION

Fall 2014 UPDATE ON QUÉBEC S ECONOMIC AND FINANCIAL SITUATION Fall 2014 UPDATE ON QUÉBEC S ECONOMIC AND FINANCIAL SITUATION Fall 2014 UPDATE ON QUÉBEC S ECONOMIC AND FINANCIAL SITUATION Update on Québec's economic and financial situation Fall 2014 Legal deposit December

More information

Three Ways to Consolidate the Fiscal

Three Ways to Consolidate the Fiscal Three Ways to Consolidate the Fiscal Situation Jun Saito, Senior Research Fellow Japan Center for Economic Research February 2, 2015 Medium-term fiscal consolidation measures to be announced In exchange

More information

STABILITY AND GROWTH PROGRAMME

STABILITY AND GROWTH PROGRAMME PORTUGAL STABILITY AND GROWTH PROGRAMME Update for the period 2005-2007 December 2004 Stability and Growth Programme 2005-2007 TABLE OF CONTENTS I. INTRODUCTION...1 II. THE MACROECONOMIC SETTING...2 RECENT

More information

LITHUANIAN PENSION SCHEMES

LITHUANIAN PENSION SCHEMES LITHUANIAN PENSION SCHEMES Audrius Bitinas Vice-minister Ministry of Social protection and labour I. STATUTORY MANDATORY SOCIAL INSURANCE P-A-Y-G PENSION SCHEME (DB) About 96 % of the employed population

More information

002226/EU XXV.GP Eingelangt am 15/11/13

002226/EU XXV.GP Eingelangt am 15/11/13 002226/EU XXV.GP Eingelangt am 15/11/13 EUROPEAN COMMISSION Brussels, 15.11.2013 COM(2013) 904 final 2013/0394 (NLE) Proposal for a COUNCIL OPINION on the Economic Partnership Programme of France EN EN

More information

English Summary. Chapter I: Economic outlook. Denmark USA Euro area

English Summary. Chapter I: Economic outlook. Denmark USA Euro area English Summary The report contains three chapters: Chapter I gives an economic outlook for the Danish economy, Chapter II contains a long term projection for the Danish economy focusing on the development

More information

2000 Design by Ministry of Finance - Treasury - Internet/intranet team - Brigitte Degeest

2000 Design by Ministry of Finance - Treasury - Internet/intranet team - Brigitte Degeest 2000 Design by Ministry of Finance - Treasury - Internet/intranet team - Brigitte Degeest Content The main orientations of the 2000-2003 Stability Programme p. 3 1. Budgetary and socio-economic policy

More information

25*$1,6$7,21)25(&2120,&&223(5$7,21$1''(9(/230(17

25*$1,6$7,21)25(&2120,&&223(5$7,21$1''(9(/230(17 25*$1,6$7,21)25(&2120,&&223(5$7,21$1''(9(/230(17 7D[3ROLF\5HIRUPVLQ,WDO\ &(175()257$;32/,&

More information

Federal Budget 2014. What the Federal Budget means Health sector

Federal Budget 2014. What the Federal Budget means Health sector Federal Budget 2014 What the Federal Budget means Health sector About NAB Health NAB Health s market leading team of specialist bankers work exclusively with businesses and professionals in the healthcare

More information

Austrian Stability Programme

Austrian Stability Programme Austrian Stability Programme Update for the period 2011 to 2016 Federal Ministry of Finance Vienna, 24 April 2012 This document is an unofficial translation of the German original version and can be accessed

More information

163rd General Report of the Belgian Court of Audit, presented to the House of Representatives on November 6, 2006.

163rd General Report of the Belgian Court of Audit, presented to the House of Representatives on November 6, 2006. 163rd General Report of the Belgian Court of Audit, presented to the House of Representatives on November 6, 2006. Summary 1 Federal Government budget implementation Filing of the Federal Government general

More information

COMMUNICATION FROM THE COMMISSION 2014 DRAFT BUDGETARY PLANS OF THE EURO AREA: OVERALL ASSESSMENT OF THE BUDGETARY SITUATION AND PROSPECTS

COMMUNICATION FROM THE COMMISSION 2014 DRAFT BUDGETARY PLANS OF THE EURO AREA: OVERALL ASSESSMENT OF THE BUDGETARY SITUATION AND PROSPECTS EUROPEAN COMMISSION Brussels, 15.11.2013 COM(2013) 900 final COMMUNICATION FROM THE COMMISSION 2014 DRAFT BUDGETARY PLANS OF THE EURO AREA: OVERALL ASSESSMENT OF THE BUDGETARY SITUATION AND PROSPECTS EN

More information

ECPRD Seminar New Fiscal Frameworks Fiscal Governance in Austria

ECPRD Seminar New Fiscal Frameworks Fiscal Governance in Austria ECPRD Seminar New Fiscal Frameworks Fiscal Governance in Austria Vienna, 20/21 June 2013 Helmut Berger CONTENT Changes and new elements in the Austrian Fiscal Framework The Austrian Federal Budget Law

More information

Congratulations! You reduced the debt to below 60% of GDP in 2018, and kept it at a sustainable level through 2030.

Congratulations! You reduced the debt to below 60% of GDP in 2018, and kept it at a sustainable level through 2030. Congratulations! You reduced the debt to below 60% of GDP in 2018, and kept it at a sustainable level through 2030. Dollars in Billions that you need to cut to get under 60% of the GDP by 2018. $0 See

More information

// BRIEF STATISTICS 2014

// BRIEF STATISTICS 2014 // BRIEF STATISTICS 2014 // TAXATION IN FINLAND Finland s taxation is subject to decisions by the Finnish Parliament, the European Union and the municipalities of Finland. It is governed by tax legislation,

More information

Attribution 4.0 International (CC BY 4.0) This presentation is licensed under a Creative Commons Attribution 4.0 International license.

Attribution 4.0 International (CC BY 4.0) This presentation is licensed under a Creative Commons Attribution 4.0 International license. Attribution 4.0 International (CC BY 4.0) This presentation is licensed under a Creative Commons Attribution 4.0 International license. Therefor you are free to share and adapt this presentation even for

More information

COMMUNICATION FROM THE COMMISSION. replacing the Communication from the Commission on

COMMUNICATION FROM THE COMMISSION. replacing the Communication from the Commission on EUROPEAN COMMISSION Brussels, 28.10.2014 COM(2014) 675 final COMMUNICATION FROM THE COMMISSION replacing the Communication from the Commission on Harmonized framework for draft budgetary plans and debt

More information

ASSESSMENT OF THE BILL ON THE 2015 BUDGET OF THE REPUBLIC OF SERBIA. Executive Summary

ASSESSMENT OF THE BILL ON THE 2015 BUDGET OF THE REPUBLIC OF SERBIA. Executive Summary Republic of Serbia FISCAL COUNCIL ASSESSMENT OF THE BILL ON THE 2015 BUDGET OF THE REPUBLIC OF SERBIA Executive Summary The 2015 Budget Bill envisages a deficit at the central government level in the amount

More information

ENGLISH SUMMARY Chapter I: Economic Outlook

ENGLISH SUMMARY Chapter I: Economic Outlook English Summary ENGLISH SUMMARY This report from the chairmen of the Danish Economic Councils contains four chapters. Chapter I presents the outlook for the Danish economy, Chapter II provides a longterm

More information

Programa Nacional de Reformas de España 2016 EXECUTIVE SUMMARY

Programa Nacional de Reformas de España 2016 EXECUTIVE SUMMARY EXECUTIVE SUMMARY Over the last four years, the Spanish Government has put in place an ambitious reform agenda that has transformed the Spanish economy. This agenda has been built over three pillars: fiscal

More information

Stability Programme of the Netherlands. December 2008 Addendum

Stability Programme of the Netherlands. December 2008 Addendum Stability Programme of the Netherlands December 2008 Addendum 1. Introduction The European Council of 11 and 12 December agreed on a European Economic Recovery Plan. This European Economic Recovery plan

More information

Designing a European Fiscal Union: Lessons from the Experiences of Fiscal Federations

Designing a European Fiscal Union: Lessons from the Experiences of Fiscal Federations Designing a European Fiscal Union: Lessons from the Experiences of Fiscal Federations 1 The Sample 13 federations: Argentina, Australia, Austria, Belgium, Brazil, Canada, Germany, India, Mexico, South

More information

ANNEX 1 - MACROECONOMIC IMPLICATIONS FOR ITALY OF ACHIEVING COMPLIANCE WITH THE DEBT RULE UNDER TWO DIFFERENT SCENARIOS

ANNEX 1 - MACROECONOMIC IMPLICATIONS FOR ITALY OF ACHIEVING COMPLIANCE WITH THE DEBT RULE UNDER TWO DIFFERENT SCENARIOS ANNEX 1 - MACROECONOMIC IMPLICATIONS FOR ITALY OF ACHIEVING COMPLIANCE WITH THE DEBT RULE UNDER TWO DIFFERENT SCENARIOS The aim of this note is first to illustrate the impact of a fiscal adjustment aimed

More information

5 Comparison with the Previous Convergence Programme and Sensitivity Analysis

5 Comparison with the Previous Convergence Programme and Sensitivity Analysis 5 Comparison with the Previous Convergence Programme and Sensitivity Analysis 5.1 Comparison with the Previous Macroeconomic Scenario The differences between the macroeconomic scenarios of the current

More information

Potential growth and fiscal consolidation in the medium term

Potential growth and fiscal consolidation in the medium term Skatteudvalget 2009-10 SAU alm. del Bilag 291 Offentligt Potential growth and fiscal consolidation in the medium term Visit of the Danish Parliament s Tax Committee, 8 September 2010 Sven Blondal Macroeconomic

More information

COUNCIL OPINION on the updated stability programme of Belgium, 2009-2012

COUNCIL OPINION on the updated stability programme of Belgium, 2009-2012 2.6.2010 Official Journal of the European Union C 143/1 I (Resolutions, recommendations and opinions) OPINIONS COUNCIL COUNCIL OPINION on the updated stability programme of Belgium, 2009-2012 (2010/C 143/01)

More information

Assessment of the 2015 Stability Programme for FINLAND

Assessment of the 2015 Stability Programme for FINLAND EUROPEAN COMMISSION Directorate-General Economic and Financial Affairs Brussels, 27 May 2015 Assessment of the 2015 Stability Programme for FINLAND (Note prepared by DG ECFIN staff) CONTENTS 1. INTRODUCTION...

More information

Assessment of the 2015 Convergence Programme for POLAND

Assessment of the 2015 Convergence Programme for POLAND EUROPEAN COMMISSION Directorate-General Economic and Financial Affairs Brussels, 27 May 2015 Assessment of the 2015 Convergence Programme for POLAND (Note prepared by DG ECFIN staff) CONTENTS 1. INTRODUCTION...

More information

Analysis 2: Reformpakke

Analysis 2: Reformpakke Analysis 2: Reformpakke 1 st July 2011 Introduction This report shows the marginal effects of a set of different shocks on the DREAM model. These shocks are listed in Table 1, where also the effect on

More information

Tax Law in Serbia General Provisions

Tax Law in Serbia General Provisions Tax Law in Serbia General Provisions Value Added Tax (VAT) The general rate of VAT levied for the turnover of goods and services, or the import of goods subject to taxation in Serbia is 18%. A special

More information

Fewer net errors and omissions, that is a new format of the balance of payments

Fewer net errors and omissions, that is a new format of the balance of payments Fewer net errors and omissions, that is a new format of the balance of payments The size of net errors and omissions in the balance of payments decreased from 4.4% to 2.3% of GDP. This resulted from data

More information

A CONSOLIDATED VERSION OF THE PUBLIC DEBT MANAGEMENT ACT

A CONSOLIDATED VERSION OF THE PUBLIC DEBT MANAGEMENT ACT M. OOZEER A CONSOLIDATED VERSION OF THE PUBLIC DEBT MANAGEMENT ACT 14 May 2015 2 A CONSOLIDATED VERSION OF THE PUBLIC DEBT MANAGEMENT ACT Act No. 5 of 2008 [Amended 14/2009, 10/2010, 36/2011, 38/2011,

More information

4 Medical Insurance and Long-term Care Insurance

4 Medical Insurance and Long-term Care Insurance Chapter VI Social Security System 4 Medical Insurance and Long-term Care Insurance Medical Insurance: Within Japan s medical insurance there is association-managed health insurance for employees (and their

More information

Province of Newfoundland and Labrador. Public Accounts Volume I Consolidated Summary Financial Statements

Province of Newfoundland and Labrador. Public Accounts Volume I Consolidated Summary Financial Statements Province of Newfoundland and Labrador Public Accounts Volume I Consolidated Summary Financial Statements FOR THE YEAR ENDED MARCH 31, 2011 Province of Newfoundland and Labrador Public Accounts Volume I

More information

002236/EU XXV.GP Eingelangt am 15/11/13

002236/EU XXV.GP Eingelangt am 15/11/13 002236/EU XXV.GP Eingelangt am 15/11/13 EUROPEAN MISSION Brussels, 15.11.2013 (2013) 908 final REPORT FROM THE MISSION Lithuania Report prepared in accordance with Article 126(3) of the Treaty EN EN REPORT

More information

WHY IS THE FISCAL POLICY IMPOSED BY IMF PRO-CYCLIC?

WHY IS THE FISCAL POLICY IMPOSED BY IMF PRO-CYCLIC? WHY IS THE FISCAL POLICY IMPOSED BY IMF PRO-CYCLIC? Marinaş Marius-Corneliu Academy of Economic Studies, Department of Economics, Bucharest marinasmarius@yahoo.fr Telephone: 0721/32.62.97 The economies

More information

Public Finances Medium-term and Annual Planning in Poland

Public Finances Medium-term and Annual Planning in Poland Public Finances Medium-term and Annual Planning in Poland Warszawa, November 2007 Plan Procedures and content of Budget Act, Domestic fiscal rules, Medium-term forecasts Convergence Programme Update 2007

More information

Has Austerity Worked in Spain?

Has Austerity Worked in Spain? December 215 Has Austerity Worked in Spain? By David Rosnick and Mark Weisbrot* Center for Economic and Policy Research 1611 Connecticut Ave. NW Suite 4 Washington, DC 29 tel: 22-293-538 fax: 22-588-1356

More information

Quarterly Economic Commentary

Quarterly Economic Commentary Quarterly Economic Commentary David Duffy Kieran McQuinn Ciara Morley Daniel Foley Winter 2015 The forecasts in this Commentary are based on data available by 11 December 2015. Draft completed 11 December

More information

Recommendation for a COUNCIL RECOMMENDATION. on the 2015 National Reform Programme of Bulgaria

Recommendation for a COUNCIL RECOMMENDATION. on the 2015 National Reform Programme of Bulgaria EUROPEAN COMMISSION Brussels, 13.5.2015 COM(2015) 253 final Recommendation for a COUNCIL RECOMMENDATION on the 2015 National Reform Programme of Bulgaria and delivering a Council opinion on the 2015 Convergence

More information

Living and Working in Austria. 1 l Income tax in Austria 2 l Social Security in Austria 3 l Residence And Work Permits in Austria

Living and Working in Austria. 1 l Income tax in Austria 2 l Social Security in Austria 3 l Residence And Work Permits in Austria Tax l Accounting l Audit l Advisory Living and Working in Austria 1 l Income tax in Austria 2 l Social Security in Austria 3 l Residence And Work Permits in Austria We are pleased to present you in our

More information

Fiscal Strategy (CSR 1) government debt privatization plan growth-friendly fiscal adjustment fiscal council

Fiscal Strategy (CSR 1) government debt privatization plan growth-friendly fiscal adjustment fiscal council Fiscal Strategy (CSR 1) Ensure that the general government debt is on a sufficiently downward path; carry out the ambitious privatization plan; implement a growth-friendly fiscal adjustment based on the

More information

FROM GOVERNMENT DEFICIT TO DEBT: BRIDGING THE GAP

FROM GOVERNMENT DEFICIT TO DEBT: BRIDGING THE GAP FROM GOVERNMENT DEFICIT TO DEBT: BRIDGING THE GAP Government deficit and debt are the primary focus of fiscal surveillance in the euro area, and reliable data for these key indicators are essential for

More information

Puerto Rico s Economic and Fiscal Crisis

Puerto Rico s Economic and Fiscal Crisis Puerto Rico s Economic and Fiscal Crisis The Economic Situation is Challenging Puerto Rico has experienced a sharper recession than the rest of the United States, and the economy continues to contract.

More information

Economics. Total marks 100

Economics. Total marks 100 2012 HIGHER SCHOOL CERTIFICATE EXAMINATION Economics Total marks 100 Section I Pages 2 8 20 marks Attempt Questions 1 20 Allow about 35 minutes for this section General Instructions Reading time 5 minutes

More information

Gao Peiyong* * Gao Peiyong, Professor, Renmin University, Beijing, China. E-mail: gaopy@263.net.

Gao Peiyong* * Gao Peiyong, Professor, Renmin University, Beijing, China. E-mail: gaopy@263.net. The Scale of Public Debt in China Gao Peiyong* In measuring the present scale of China s public debt, cess has public debt in China experienced? Thirdly, facing the current situation of public debt in

More information

Taxation of Housing in Belgium Facts and reforms. Christian VALENDUC Geert VAN REYBROUCK Federal Ministry of Finance, Studies department

Taxation of Housing in Belgium Facts and reforms. Christian VALENDUC Geert VAN REYBROUCK Federal Ministry of Finance, Studies department Taxation of Housing in Belgium Facts and reforms Christian VALENDUC Geert VAN REYBROUCK Federal Ministry of Finance, Studies department Taxation of housing in Belgium Facts: how do we tax property in Belgium?

More information

Euro Plus Pact Commitments made by Ireland in May 2011. Update as of April 2013

Euro Plus Pact Commitments made by Ireland in May 2011. Update as of April 2013 Euro Plus Pact Commitments made by Ireland in May 2011 1. Fostering Competitiveness Update as of April 2013 An independent review of Employment Regulation Order (ERO) and Registered Employment Agreement

More information

TAX CARD 2015 ROMANIA

TAX CARD 2015 ROMANIA ROMANIA TAX CARD TAX CARD 2015 ROMANIA Table of Contents 1. Individuals 1.1 Personal Income Tax 1.1.1 Tax Rates 1.1.2 Taxable Income 1.1.3 Exempt Income 1.1.4 Deductible Expenses/Allowances 1.2 Social

More information

TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%.

TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%. TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%. Corporations in Turkey can be regarded as either limited or unlimited

More information

The Mexican Economy: Facts and Opportunities

The Mexican Economy: Facts and Opportunities Manuel Sánchez Santander Global Fixed Income Summit London, England, September 20, 2012 Contents 1 Structural features 2 Recent developments and outlook 3 Inflation and monetary policy 4 Economic challenges

More information

Stability and Growth Pact An Overview of the Rules

Stability and Growth Pact An Overview of the Rules IPOL EGOV DIRECTORATE-GENERAL FOR INTERNAL POLICIES ECONOMIC GOVERNANCE SUPPORT UNIT B R IE F IN G Stability and Growth Pact An Overview of the Rules The Stability and Growth Pact (SGP) is the legal framework

More information

Central Government Budget Bill for 2014

Central Government Budget Bill for 2014 Central Government Budget Bill for 2014 September 30th 2013 1 Spain Macroeconomic Scenario Year on year % change 2012 2013 2014 Real GDP -1,6-1,3 0,7 Nominal GDP -1,7-0,3 2,1 Private Consumption -2,8-2,6

More information

Monetary policy, fiscal policy and public debt management

Monetary policy, fiscal policy and public debt management Monetary policy, fiscal policy and public debt management People s Bank of China Abstract This paper touches on the interaction between monetary policy, fiscal policy and public debt management. The first

More information

Pension schemes are integral parts of China s social protection system

Pension schemes are integral parts of China s social protection system Dewen Wang World Bank March 26-27, 2014, Incheon, Republic of Korea Pension schemes are integral parts of China s social protection system SP programs Social Insurance Social Assistance Social Welfare

More information

GERMANY TAX GUIDE. International Business Publications, USA Washington, DC, USA - Germany

GERMANY TAX GUIDE. International Business Publications, USA Washington, DC, USA - Germany GERMANY TAX GUIDE International Business Publications, USA Washington, DC, USA - Germany -3- GERMANY TAX GLIDE TABLE OF CONTENTS IMPORTANT INFORMATION FOR UNDERSTANDING GERMAN 10 STRATEGIC PROFILE 10 Geography

More information

Discussion of Consequences of Government Deficits and Debt

Discussion of Consequences of Government Deficits and Debt Discussion of Consequences of Government Deficits and Debt Alberto Alesina Harvard University 1. Introduction I am very pleased to participate in this conference in honor of Benjamin Friedman, for two

More information

Reviving local public investments. Flexibility is needed in the existing rules of the Stability and Growth Pact. CEMR Position paper December 2015

Reviving local public investments. Flexibility is needed in the existing rules of the Stability and Growth Pact. CEMR Position paper December 2015 Reviving local public investments Flexibility is needed in the existing rules of the Stability and Growth Pact CEMR Position paper December 2015 Council of European Municipalities and Regions Registered

More information

BS2551 Money Banking and Finance. Institutional Investors

BS2551 Money Banking and Finance. Institutional Investors BS2551 Money Banking and Finance Institutional Investors Institutional investors pension funds, mutual funds and life insurance companies are the main players in securities markets in both the USA and

More information

An outlook on the Spanish economy Official Monetary and Financial Institutions Forum (OMFIF), London

An outlook on the Spanish economy Official Monetary and Financial Institutions Forum (OMFIF), London 09.02.2016 An outlook on the Spanish economy Official Monetary and Financial Institutions Forum (OMFIF), London Luis M. Linde Governor I would like to thank OMFIF and Mr. David Marsh for the invitation

More information

Latvia during the global economic and financial crisis

Latvia during the global economic and financial crisis Latvia during the global economic and financial crisis Second Japan Baltic Seminar 1 December 2009, Tokyo 1 Different experience behind, challenges ahead 15 10 5 Transition -56% in 1991-1993 GDP 1991-2012

More information

Why invest in employment?

Why invest in employment? Why invest in employment? A study on the cost of unemployment Final report On behalf of: European Federation for Services to Individuals (EFSI) Maarten Gerard Daphné Valsamis Wim Van der Beken With the

More information

2015 Article IV Consultation with Sweden Concluding Statement of the IMF Mission

2015 Article IV Consultation with Sweden Concluding Statement of the IMF Mission 2015 Article IV Consultation with Sweden Concluding Statement of the IMF Mission Sweden s economy is performing well. But housing prices and household debt are elevated and rising and unemployment is high

More information

DEMOGRAPHICS AND MACROECONOMICS

DEMOGRAPHICS AND MACROECONOMICS 1 FRANCE DEMOGRAPHICS AND MACROECONOMICS Nominal GDP (EUR bn) 1 950 GDP per capita (USD) 44 550 Population (000s) 62 277 Labour force (000s) 28 415 Employment rate 92.6 Population over 65 (%) 16.7 Dependency

More information

Investment incentives in Bulgaria

Investment incentives in Bulgaria Investment incentives in Bulgaria Types of incentives under the current Bulgarian legislation Tax incentives Incentives under the Investment Promotion Act (IPA) Employment incentives (training and job

More information

Tipp City Exempted Village Schools. Miami County

Tipp City Exempted Village Schools. Miami County Tipp City Exempted Village Schools Miami County Assumptions for Five-Year Financial Forecast Projected Fiscal years July 1, 2014 through June 30, 2019 Forecast provided by: Tipp City Exempted Village School

More information

Fiscal consolidation: the Greek case. Dionysios A. Lalountas Directorate of Macroeconomic Policy & Forecasts Ministry of Finance

Fiscal consolidation: the Greek case. Dionysios A. Lalountas Directorate of Macroeconomic Policy & Forecasts Ministry of Finance Fiscal consolidation: the Greek case Dionysios A. Lalountas Directorate of Macroeconomic Policy & Forecasts Ministry of Finance 1 Structure of the presentation Macroeconomic developments before the sovereign

More information

Assessment of the Fulfilment of the Maastricht Convergence Criteria and the Degree of Economic Alignment of the Czech Republic with the Euro Area

Assessment of the Fulfilment of the Maastricht Convergence Criteria and the Degree of Economic Alignment of the Czech Republic with the Euro Area Assessment of the Fulfilment of the Maastricht Convergence Criteria and the Degree of Economic Alignment of the Czech Republic with the Euro Area A joint document of the Ministry of Finance of the Czech

More information

Tax System Challenges in the 21 st Century

Tax System Challenges in the 21 st Century Tax System Challenges in the 21 st Century American taxpayers paid about $1.9 trillion in combined federal taxes, including income, payroll, and excise taxes, in fiscal year 2004. These taxes, along with

More information

Country Tax Guide. www.bakertillyinternational.com

Country Tax Guide. www.bakertillyinternational.com Country Tax Guide www.bakertillyinternational.com Baker Tilly Russia www.bakertilly.ru Eduard Kutcherov T: +7 (495) 783 88 00 kutcherov@bakertilly.ru Andrey Kirillov T: +7 (495) 783 88 00 a.kirillov@bakertilly.ru

More information

MINISTRY OF NATIONAL DEFENCE BUDGETARY DEPARTMENT. BASIC INFORMATION ON THE MoND BUDGET FOR 2016

MINISTRY OF NATIONAL DEFENCE BUDGETARY DEPARTMENT. BASIC INFORMATION ON THE MoND BUDGET FOR 2016 MINISTRY OF NATIONAL DEFENCE BUDGETARY DEPARTMENT BASIC INFORMATION ON THE MoND BUDGET FOR 2016 Warsaw, February 2016 Basic Macroeconomic Indicators 2016 National budget 2016 Defence budget 2016 2,00%

More information

COMMISSION STAFF WORKING DOCUMENT

COMMISSION STAFF WORKING DOCUMENT EUROPEAN COMMISSION Brussels, 27.2.2015 SWD(2015) 19 final COMMISSION STAFF WORKING DOCUMENT Analysis by the Commission services of the budgetary situation in France following the adoption of the COUNCIL

More information

AGREEMENT ON PROPOSALS FOR TRIPARTITE NEGOTIATIONS TO STRENGTHEN ECONOMIC GROWTH AND CREATE JOBS

AGREEMENT ON PROPOSALS FOR TRIPARTITE NEGOTIATIONS TO STRENGTHEN ECONOMIC GROWTH AND CREATE JOBS AGREEMENT ON PROPOSALS FOR TRIPARTITE NEGOTIATIONS TO STRENGTHEN ECONOMIC GROWTH AND CREATE JOBS The Spanish economy has entered a phase of growth. However, the duration and intensity of the crisis and

More information