Scholarly record

EXTENT OF THE CRISIS AND POST-CRISIS CONSOLIDATION OF PUBLIC FINANCES IN GERMANY, FRANCE, SPAIN AND IRELAND IN 2009 – 2018

B. Mucha-Leszko

Abstract

The goal of the paper is to evaluate the effects of budget policy aimed at improving the condition of public finances in selected countries of the euro area. Author focuses on countries that prior to the crisis had budget surpluses and low public debt (Ireland and Spain) but also on France and Germany that fulfilled treaty criterion on budget deficit and were close to fulfilling the public debt criterion. Aftermath of the 2008-2009 crisis in the case of public finances of the analyzed countries were varied in terms of the size of budget deficit and growth of public debt. Dramatic destabilization of public finances occurred in Ireland and Spain. In France public finance crisis deepened with the second wave of recession and tackling continuous low economic growth. The paper includes results of balancing budgets and reducing public debt in analyzed countries. Author also points to the facts that the major impact on progress in budgetary consolidation stemmed from: economic growth, stability programmes, sources of primary imbalances and realisation of public investment.

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