Explaining the Divergence in German and French Public Finances
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Andreas Eisl
Abstract
In this contribution, I discuss the divergence of German and French public finances over the course of the last two decades. Major gaps in public deficit/debt levels and debt service costs have opened even under the presence of a common fiscal framework at the EU level. To explain these differences, I focus on three elements: the (non-)perception of budgetary and socio-economic crisis, differences in demographic conditions, and contrasting approaches towards the role of rules and expertise in fiscal policymaking. The contribution illustrates these points by providing two concise case studies on key developments in fiscal policymaking and institutions since the 1990s. I conclude with a brief reflection on German and French fiscal policymaking in the years to come.
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© 2024 Walter de Gruyter GmbH, Berlin/Boston
Articles in the same Issue
- Frontmatter
- Editorial
- Economic Policy Making Under Hardening Fiscal Constraints
- Policy Papers (No Special Focus)
- A Latticework of Inflation Models
- A Comparative Evaluation of Fiscal Stabilization Strategies during the Covid-19 Pandemic with Germany as a Reference Point
- The Relationship Between the German Current Account and Financial Account: Evidence from the Toda-Yamamoto Causality Approach
- The Tax Attractiveness of EU Locations for Corporate Investments: A Stocktaking of Past Developments and Recent Reforms
- Aid in Conflict: Determinants of International Aid Allocation to Ukraine During the 2022 Russian Invasion
- Policy Forum: Economic Policy in an Era of Hardening Fiscal Constraints
- Public Debt Ratios Will Increase For Some Time. We Must Make Sure That They Do Not Explode
- An EU Fund to Incentivise Public Investments with Positive Externalities
- The Case for Putting a Public Investment Clause into the German Debt Brake
- EU Debt Instruments and Fiscal Transparency: The Case of the EU Recovery Fund
- Explaining the Divergence in German and French Public Finances
- Fiscal Prospects for Italy
- The Swiss Debt Brake Is Democratic, Strict, Transparent, and Binding. A Model to Follow?
Articles in the same Issue
- Frontmatter
- Editorial
- Economic Policy Making Under Hardening Fiscal Constraints
- Policy Papers (No Special Focus)
- A Latticework of Inflation Models
- A Comparative Evaluation of Fiscal Stabilization Strategies during the Covid-19 Pandemic with Germany as a Reference Point
- The Relationship Between the German Current Account and Financial Account: Evidence from the Toda-Yamamoto Causality Approach
- The Tax Attractiveness of EU Locations for Corporate Investments: A Stocktaking of Past Developments and Recent Reforms
- Aid in Conflict: Determinants of International Aid Allocation to Ukraine During the 2022 Russian Invasion
- Policy Forum: Economic Policy in an Era of Hardening Fiscal Constraints
- Public Debt Ratios Will Increase For Some Time. We Must Make Sure That They Do Not Explode
- An EU Fund to Incentivise Public Investments with Positive Externalities
- The Case for Putting a Public Investment Clause into the German Debt Brake
- EU Debt Instruments and Fiscal Transparency: The Case of the EU Recovery Fund
- Explaining the Divergence in German and French Public Finances
- Fiscal Prospects for Italy
- The Swiss Debt Brake Is Democratic, Strict, Transparent, and Binding. A Model to Follow?
