The unsustainability of independent fiscal institutions
Since the economic and financial crises, the European Union (EU) is stepping up its efforts to develop credible and reliable independent fiscal institutions (IFIs). As a result EU IFIs are mushrooming in the member states.
In this policy brief the governance framework surrounding the IFIs is assessed. How are IFIs managed, does this correspond with what we know about effective governance frameworks, and what does this tell us about the direction of European integration – European centralisation or decentralised network management –? The answers will shed light on whether there are sufficient safeguards in place that will ensure the sustainability of the IFIs’ development, effectiveness and efficiency.
The author concludes that the governance framework is still underdeveloped and that it lacks a clear view on how coordination and control in a multilevel setting should take place.