Fiscal Stimulus in the European Union to Stabilize the COVID Shock

• 영문명: Fiscal Stimulus in the European Union to Stabilize the COVID Shock
• 발행기관: 세종대학교 경제통합연구소
• 저자명: Séverine Menguy
• 간행물 정보: 『Journal of Economic Integration』제37권 제4호, 559~588쪽, 전체 30쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2022.12.01

영문 초록

We document fiscal policies adopted in 2020 in five major European Union (EU) countries to deal with the COVID-19 pandemic. Then, we show the correlations between fiscal indicators and GDP growth. Economic stabilization was easier in countries where the budget deficit and the public debt were relatively small, with more room for maneuvers to conduct a counter-cyclical fiscal policy. Besides, the increase in public expenditure (cash transfers) did not always correlate with economic growth, whereas preserving government revenue was important in the case of tax cuts. More precisely, regarding the fiscal revenues of the EU member countries in 2020, reducing the weight on corporate income taxation, to sustain production supply and wealth creation by firms, was correlated with higher economic growth. Stylized facts show that the recession was weaker in countries where the relative weight of indirect taxation on household consumption increased, as in the Nordic countries.

목차

I. Introduction

II. Fiscal Policies during the COVID Crisis in the European Union

III. Correlation between Fiscal Policies and Economic Growth

IV. Conclusion

References

Appendix

키워드

COVID-19 European Union fiscal policies capital taxation rate consumption taxation rate economic growth