EXCESSIVE DEFICIT PROCEDURE IN VISEGRAD COUNTRIES

The authors state that the fiscal policies conducted by EU member states have their limits since there are supranational rules and norms. The Excessive Deficit Procedure (EDP) seems to be a topical issue, because it binds member states with budget consolidation. The Visegrad countries exercised fiscal consolidations during 2009-2013(5). They behaved differently: Hungary had the most ambitious consolidation due to substantial problems in its fiscal system, Poland and Slovakia introduced mixed measures, and the Czech Republic cut public investments and raised indirect taxes. All in all, these consolidations could be called successful enough, because they brought the countries out of the EDP. To some extent, consolidations have changed the structure of governments’ revenues and expenditures and the level of tax burden (in Slovakia) or pension system (in Hungary). Countries managed to return to a balanced budget, prevented the risk of EU sanctions and restored confidence to their fiscal systems.