Baltic countries fiscal institutions are united in keeping tight fiscal discipline  17 June 2015

Baltic countries fiscal institutions are united in keeping tight fiscal discipline

On 16 June 2015 Riga hosted the first meeting of the Baltic independent fiscal institutions meeting, which was intended to discuss the European fiscal framework and the Baltic States fiscal discipline practice.

"All Baltic countries are currently free of macroeconomic imbalances balances and are not under excessive fiscal deficit procedure. Meanwhile, the Baltic countries face similar fiscal challenges and the tasks of monitoring the fiscal discipline are quite common. Independent fiscal institutions apply similar principles, and encounter a similar range of problems such as the short time for decision-making and timely access to information. This meeting was the first and we have already outlined next year's meeting and co-operation will continue on a daily basis", informs Ülo Kaasik who works for both Latvian and Estonian Fiscal Councils.

The range of issues that discussed during the meeting have been related to the assessment of the output gap, the independent endorsement of the government macroeconomic projections, assessing the government requests for increasing budget deficits due to one-off measures and structural reforms, and access to information.

"We find it difficult to agree with the assessment of the European Commission that the economies of Baltic countries would be overheating. We regard the Baltic economies operating near their potential, while the developments require very close monitoring to avoid imbalances emerging. Closer cooperation of the Baltic independent fiscal institutions will allow a better shaping fiscal policies to promote sustainable economic growth", says Council member Morten Hansen.