. The commonly accepted reasons are political economy and uncertainty. In the EU, the pro-cyclical nature of discretionary … scope for stabilising output. Using panel data covering close to 50 EU and non-EU countries, we provide evidence that the …

The cyclically adjusted budget balance (CAB) plays a key role in the EU fiscal surveillance framework. It started off … partly met. The everyday practice of the EU fi scal surveillance rapidly revealed a number of caveats of the CAB which, at … fortunes of the CAB in the EU fiscal surveillance framework. It portrays its main shortcomings and the way they are dealt with …