LAWS TO WATCH: Fiscal Responsibility Act
The proposed amendments introduces temporary fiscal regulations during the Excessive Deficit Procedure (EDP), which is tied to the achievement of nominal deficit adopted in the recommendations of the Council of Europe. Along with the deficit requirement, it includes a debt requirement, such that the public debt exceeding 60% of GDP shall be reduced by 1/20th the value above the exceeding GDP per year, in line with the Stability and Growth Pact.
The act provides a greater monitoring role for the Commission for Fiscal Policy over the implementation of the Fiscal Responsibility Act. In June, the Commission for Fiscal Policy concluded that in 2013 the increase in the share of general government expenditure in GDP of 0.2% and an increase in public debt to 62% of GDP violated the Fiscal Responsibility Act, the State Budget Act and State Budget Execution Act. The government has already changed its fiscal rules by amending the Fiscal Responsibility Act, which entered into force in February 2014.
Note: Public debate is open until 28 August…