The aim of this research project is to produce information about the framework system. The project draws up a vision of what kind of development needs can be seen in Finland’s framework system and what concrete actions could be taken to respond to these.
The expenditure development and balance of Finland’s public finances are guided by the framework system for the state’s budget finances, voluntarily introduced by the governments, and the regulations governing the public finances of EU countries. Although efforts have been made to guide the economic policy of the member states with common fiscal policy rules for a long time, indebtedness has not decreased on average in the EU during economic booms and sufficient financial buffers have not been created for downturns.
Both Finland and Europe need fiscal policy rules in the future as well. The indebtedness of public economies must be reversed so that countries can afford to pursue active economic policy and crisis management in the future as well. Both the domestic expenditure framework and the regulation of the EU fiscal policy framework can support this goal. A comprehensive re-evaluation of the regulatory framework is necessary.
Information is collected based on the following research questions:
The research project is implemented as a joint project of Etla and professors Vesa Vihriälä (University of Helsinki) and Iain Begg (LSE). Etla isresponsible for the project’s research work.