cases, the changes recently introduced or planned could go in the direction of an improved quality of the
fiscal framework.
Although to a lesser extent than rules, improvements to strengthen national fiscal institutions and
budgetary procedures have also been implemented or announced in some programmes (e.g. France).
Overall, Member States frequently mentioned two aspects of their fiscal frameworks when announcing
recently implemented or envisaged reforms:
- The purpose of reforming the fiscal relations between government tiers with a view to better
monitoring budgetary developments at sub central levels (e.g. France, Germany, Spain, Italy,
Denmark and the Netherlands). - The intention of implementing medium term budgetary frameworks (or strengthening the existing
ones) to improve budgetary management through multi-annual planning (e.g. Bulgaria; Estonia,
France, Spain, Cyprus and Latvia).
This overview also made it possible to compare policy invitations related to domestic budgetary
frameworks included in the Council opinions on the 2005 SCP updates with the measures announced or
envisaged in the 2006 SCP updates. The following results deserve due attention:
- Approximately half of Member States which have been invited to improve their fiscal frameworks
in the context of the 2005 SCPs have introduced reforms in the right direction in the course of
2006 (e.g. France, Portugal and Italy). - On the whole, additional efforts are, however, still needed in most of the Member States that have
been invited to improve their framework. Despite some recent progress, further efforts are still
needed in countries such as Hungary and Poland in relation to the recommended improvements of
their budgetary institutions. - Nearly one third of countries which have not been invited to strengthen their fiscal frameworks in
last year's round of the SCPs have implemented or announced plans to improve their domestic
fiscal governance. For instance, countries registering positive budgetary developments and
respecting both national and EU rules (e.g. Estonia and Spain) have undertaken measures to
reinforce their fiscal frameworks.
On the whole, the overview showed encouraging initiatives adopted in a number of Member States in
order to strengthen their national fiscal frameworks. However, further efforts are still needed so as to
reinforce domestic fiscal governance, which in turn will support compliance with the SGP provisions.
Way forward
Member States concluded that the exchange of best practices included in the overview has made it
possible to identify successful experiences by presenting different solutions adopted in different
countries, which could be particularly useful for those Member States with more fragile fiscal
frameworks. It was also considered that this exercise could help to strengthen the preventive arm of the
SGP. Based on the October Ecofin conclusions, it was agreed to continue this exercise in the next round
of the SCPs, and Member States agreed to improve the information on national fiscal frameworks
included in the updates.^16 Finally, the Commission was also requested to prepare a new report on the
implementation of fiscal rules in relation to pro-cyclicality to be submitted for discussion in summer or
early autumn.
In parallel, the Commission has already undertaken or envisaged new projects dealing with other aspects
of national fiscal frameworks. Specifically, a survey on the preparation of the SCPs and their link with
(^16) They agreed to focus on implemented or envisaged changes in national fiscal frameworks and new initiatives; and on
how they have been implemented.