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The role of tax policy in times of fiscal consolidation

Author(s): Savina Princen and Gilles Mourre

The role of tax policy in times of fiscal consolidationpdf(2 MB) Choose translations of the previous link  

Summary for non-specialistspdf(60 kB) Choose translations of the previous link 

The paper consists in the proceedings of the workshop organised by the Directorate General for Economic and Financial Affairs held in Brussels on 18 October 2012.

Against the background of severe consolidation needs in many EU Member States, the workshop addressed the macroeconomic impact and redistributive effects of consolidation measures on the revenue side, two topics ranking high on the current taxation policy agenda.

The proceedings gather together the views of academics, national policy-makers and international institutions expressed during the conference.

The presentations and discussions in the first session touched upon the balance between current consolidation measures and their medium-term effects. It also provided insights from macroeconomic modelling to design tax consolidation policy and looked into ways to measure consolidation efforts on the tax side.  

The second session discussed the best tax bases to be used to safeguard social equity and considered income and capital tax options to make the richest contribute to meeting fiscal adjustment needs. Country-specific presentations showed how tax measures were used for consolidation purposes and looked into various experiences in distributing income through the tax system.

(European Economy. Economic Papers 502. August 2013. Brussels. PDF. 111pp. Tab. Bibliogr. Free.)

KC-AI-13-502-EN-N (online)
ISBN 978-92-79-32328-7 (online)
doi: 10.2765/54257 (online)

JEL classification: E62, H24, H26

Economic Papers are written by the staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and to seek comments and suggestions for further analysis. The views expressed are the author’s alone and do not necessarily correspond to those of the European Commission.

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