The issue of fiscal sustainability takes on a special relevance in the European Union. It is actually at the core of the budgetary framework underlying European Monetary Union.
The Treaty of Maastricht and the Stability and Growth Pact have set fiscal rules and monitoring procedures aimed at restraining deficit and debt levels while allowing room for fiscal stabilisation. The assessment of prospective compliance with EMU fiscal rules is crucial to timely corrective intervention.
The second Banca d’Italia workshop on public finances examined all these issues and was divided in four sections. The first section sets the ground for the discussion by addressing conceptual and definitional issues. The second and the third sections include papers presenting applications of different techniques for the assessment of fiscal sustainability.
The former covers expenditure and revenue projections and the latter deals exclusively with generational accounting. The fourth and concluding section focuses on policy issues.
Attendance at the conference is by invitation only.
Organizer: Mr. Daniele Franco, Banca d’Italia
