Research Catalog

Title

Achieving Fiscal Flexibility and Safeguarding Sustainability [electronic resource]: The Case of Slovakia / Isabell Koske

Author

Koske, Isabell.

Publication

Paris : OECD Publishing, 2009.

Details

Description

28 p.; 21 x 29.7cm.

Summary

Euro area entry calls for more fiscal flexibility to absorb cyclical shocks that cannot be dealt with by the common monetary policy. At the same time fiscal consolidation must not be put at risk, especially given rising ageing related costs. The current fiscal framework could be improved by introducing multi-year expenditure ceilings and by removing pro-cyclical elements in fiscal rules. An adjustment account that serves to register breaches of fiscal rules and eliminates them over time could help in coping with projection errors. To ensure long-term sustainability of public finances it is essential not to dilute the substantial improvements in the long-term balance of the definedbenefit pillar associated with past pension reforms. The government should consider making participation in the defined contribution pillar mandatory for new labour market entrants or, at the very least, make it the default option. For current workers the pillars should remain closed. Moreover, further parametric changes such as increasing the retirement age in line with life expectancy gains and reducing unsustainable elements in the pension formula would improve the balance of the defined benefit pillar.

Series Statement

OECD Economics Department Working Papers, 1815-1973 ; no.681

Uniform Title

OECD Economics Department Working Papers, no.681.

Subject

• Economics
• Slovak Republic

LCCN

10.1787/226231818862

OCLC

oecd-lib

Author

Koske, Isabell.

Title

Achieving Fiscal Flexibility and Safeguarding Sustainability [electronic resource]: The Case of Slovakia / Isabell Koske

Imprint

Paris : OECD Publishing, 2009.

Series

OECD Economics Department Working Papers, 1815-1973 ; no.681

OECD Economics Department Working Papers, 1815-1973 ; no.681.

Connect to:

Full text online available onsite at NYPL

Indexed Term

Economics

Slovak Republic

Other Standard Identifier

10.1787/226231818862 doi