The influence of the EU on budgetary management: Experiences from Hungary and Slovakia

TitleThe influence of the EU on budgetary management: Experiences from Hungary and Slovakia
Publication TypeStudy
AuthorsGyőrffy, Dóra
Refereed DesignationNon-Refereed
EditorMedve-Bálint, Gergő
PublisherCenter for EU Enlargement Studies
Place PublishedBudapest
Year2011
EditionEU Frontiers Policy Paper
NumberNo. 4.
Pages27
Date Published06/2011
LanguageEnglish
Abstract

The central question of this study is to what extent the EU could
influence the evolution of budgetary rules in the New Member States,
prior to membership in the euro-zone and facing the challenge of fiscal
adjustment. The paper compares the experiences of Slovakia and
Hungary, which represent most similar cases as both have struggled with
fiscal imbalances and weak budgetary institutions since the beginning of
transition. While theories of Europeanization and policy transfer would
have predicted reforms in both cases, only Slovakia can be considered
successful in addressing these problems. The main insight from the
comparison of the two cases is that instead of promoting policy transfer,
the major influence of the EU was essentially the facilitation of domestic
aspirations – in the case of Slovakia it provided both incentives and
assistance for the strengthening of budgetary management, while in the
case of Hungary the credibility offered by the EU made the postponement
of necessary adjustment possible.

KeywordsCentral Europe, economic governance, Eu, good governance
Type of WorkPolicy Paper
Citation Key23545
Unit: 
Center for European Neighborhood Studies (CENS)
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