Microsoft Word - 00_Title_draft.doc

C
OUNTRY

TYPE OF RULE

DEFINITION OF THE RULE (AGREGATE TARGETED

& RELEVANT

ACCOUNTING SYSTEM

)

SECTOR

(S) COVERED

TIME FRAME

STATUTORY BASE

BODY IN CHARGE OF MONITORING

ENFORCEMENT

(BODY

& ACTIONS

IN CASE OF NON

• COMPLIANCE

)

Debt rule

Debt limits as a % of budgeted revenues Budgetary accounting

Local government

Annual

Legal act

Government (Ministry of Finance)

Government and national Parliament Proposition of corrective measures (possible reduction in transfers)

FINLAND

Expenditure rule

Real expenditure ceiling Budgetary accounting

Central government

Multiannual (5 years)

Political agreement

Government (Ministry of Finance)

Governmental structure proposes corrective measures

Budget balance rule

Budget balance as % GDP ESA95 accounting

Central government

Multiannual (5 years)

Political agreement

Government (Ministry of Finance)

Governmental structure No pre-defined action (political pressure to ensure compliance)

Debt rule

Debt to GDP ratio has to be reduced Budgetary accounting

Central government

Multiannual (5 years)

Political agreement

Government (Ministry of Finance)

Governmental structure No pre-defined action (political pressure to ensure compliance)

Revenue rule

Allocation of revenue surpluses ESA95 accounting

Social security

Multiannual (business cycle)

Legal act

Governmental structure (Ministry of Social Affairs and Health).

Independent enforcer No pre-defined action

Budget balance rule

Budget balance rule in nominal terms Budgetary accounting

Local government

Multiannual (4 years)

Legal act

Independent (auditing committees) and governmental structure (Ministry of Interior)

Same as monitoring Preparation of plans to cover eventual deficits, possible personal admonitions

FRANCE

Expenditure rule

Real expenditure growth rate Budgetary accounting

Central government

Annual

Political agreement

Independent (Court of Auditors) and National Parliament

No pre-defined action in case of non-compliance

Revenue rule

The government has to pre-define the allocation of possible higher-than-expected tax revenue Budgetary accounting

Central government

Annual

Legal act

Independent (Court of Auditors) and National Parliament

No pre-defined action in case of non-compliance

Expenditure rule

Ceiling in volume for health expenditure growth rate ESA95 accounting

Social security

Annual

Legal act

Independent Alert Committee and Court of Auditors

Independent Alert Committee proposes corrective measures

Budget balance rule

Golden rule Budgetary accounting

Local government

Annual

Legal act

Independent (regional Court of Auditors)

Obligation to propose corrective measures

GERMANY

Budget balance rule

Budget balance in nominal terms Budgetary accounting

Central government

Annual

Constitution and legal act

Government (Ministry of Finance) and National Parliament

Possibility of a challenge at Constitutional Court No pre- defined action

Expenditure rule

Nominal expenditure growth rate Budgetary accounting

Central and regional governments

Multiannual (5 years)

Political agreement between central and regional governments

Governmental stru

cture (Financial

Planning Council with central, regional and local members)

None (Financial Planning Council can criticise rule violations and deviations) No pre-defined action

Budget balance rule

Budget balance in nominal terms (golden rule) Budgetary accounting

Regional government

Annual

Constitution

Government (Ministr

ies of Finance of

Länders)

None, but possibility of a legal challenge at the Constitutional Court No pre-defined action

Debt rule

Specific amount of debt in nominal terms Budgetary accounting

Local government

Annual (1 or 2 years)

Legal act

Governmental structure (Communal Supervisory Agencies of the Länder)

Governmental structure Permission for credits refused

Budget balance rule

Budget balance in nominal terms Budgetary accounting

Local government

Annual

Legal act

Governmental structure (Communal Supervisory Agencies of the Länder)

Governmental structure Clear actions are foreseen in case of non-compliance

HUNGARY

Debt rule

Ceiling in proportion with capacity to repay debt Budgetary accounting

Local government

Annual

Legal act

No official body (supervision of private banks)

None No pre-defined action

IRELAND

Expenditure rule

Automatic allocation of expenditure to the National Pension Reserve Fund Budgetary accounting

Central government

Annual

Legal act

Government (Ministry of Finance)

Government No pre-defined action