Improving the quality of public finances has become a key policy challenge for European policy makers. While maintaining sound budget positions remains the linchpin of the European Union’s fiscal framework, rising pressures from globalisation and ageing populations are calling to improve also the qualitative aspects of fiscal policy with a view to supporting economic growth. This includes to better target public resources, raise the efficiency of public spending, modernise public finance institutions and budget administration, create supportive fiscal frameworks and establish efficient and growth- enhancing revenue systems. The need for such a comprehensive approach to strengthen public finances is laid out in this collection of papers prepared by the EPC Working Group on the Quality of Public Finances between 2004 and 2007. It also highlights the challenges that come along with policy implementation by drawing on a number of country case studies.
