EVALUATION OF FISCAL RULES IN THE EURO AREA AND IN THE UNITED KINGDOM

This paper deals with the fiscal regulation in EU and the UK, analysing the Stability and Growth Pact (SGP) after the Six-pack reform and the recent introduction of British fiscal rules. The main aim of the first section of this paper is to compare the SGP before and after the Six-pack reform in order to determine whether the reform has contributed to conformity of the SGP with theoretical requirements on fiscal rules, as defined by Kopits and Symansky (1998). According to our analysis, it could be concluded that the Six-pack reform has contributed to better fiscal regulation in EU compared with theoretical requirements. Enforceability in real conditions, nonetheless, still depends on political will. The second section deals with the two recent British fiscal rules, which are also analysed using the Kopits and Symansky framework. The analysis of Eurozone and British fiscal rules aims at contributing to the current discussions about the economic consequences of Brexit.