Microsoft Word - 00_Title_draft.doc

Commission could continue its analysis of the advantages and disadvantages of alternative tax bases as
well as a quantification of the effects of shifting taxes across tax bases (non-profit/profit tax base, green
taxes, etc.). Finally, it will also pay particular attention to the development and effects of tax
expenditures on budgets.

Annex 1: Major national reform initiatives to improve public sector efficiency

and effectiveness

• Many Member States aim to enhance the efficiency and effectiveness of public spending by
  improving the design of the budget and allocation of resources. 10 Member States indicated that
  they have introduced or improved their medium-term budgetary framework (LT, CY, CZ, PL, RO,
  EE, SK) or undertaken other kinds of budgetary reforms like FR ("LOLF"), LV ("Public
  expenditure management reform") and NL (Performance budgeting). Many Member States
  combine their efforts to introduce a medium-term budgetary framework with more performance
  information.


• Some Member States enhance efficiency by reforming public administration. In particular, public
  employment management is under revision in some Member States. For example, HU reformed
  the pay system of civil servants and MT introduced a results-oriented employee appraisal system.
  Furthermore, the introduction of new IT systems seems to be a key driver in modernising public
  administration. E-Government was introduced or better utilised in BE, ES, AT and DK. Some
  Member States (LT, CY, PL) introduced new fiscal reporting or accounting tools.


• High efficiency gains are also expected by Member States through a restructuring of local
  governments. In particular, the Scandinavian countries restructured their local government, for
  example by merging municipalities (FI). In other (federal) countries constitutional reforms are in
  progress (DE, AT). In particular in specific areas like education and health care, the
  decentralisation of the management of funds is a priority in some countries (RO).


• In specific areas, like pension systems, health care, education, infrastructure, Member States have
  implemented reforms to enhance efficiency. For example in SE, schools have been exposed to
  competition ("independent schools") to enhance the quality and consequently the efficiency of the
  education system.

Major national reform initiatives to improve public sector efficiency and effectiveness

Country Major government wide reform initiative Specific policy areas

AT Administrative reform

R&D institutional and strategic

reforms, University reform, Railway

reform

BE eGovernment Labour market

BG Medium-term budgetary framework, public expenditure management reform Public Finance School (civil servants), Education,, R&D, Health care

CY Medium-term budgetary framework, Fiscal accounting system (FIMAS)

CZ Medium-term budgetary framework, programme financing R&D (Outcome assessment)

DE Constitutional reform, "cutting red tape", Reducing subsidies, Labour market, Education, R&D, Health care

DK eGovernment, Local government reform

EE Medium term budgeting Pension insurance system reform, Health care sector, Internal security