Local Public Finance in Europe: Balancing the Budget and Controlling Debt (Studies in Fiscal Federalism and State-local Finance series)

Most countries apply some form of restrictions to local government budgeting and borrowing, but in various forms and to varying degrees. These restrictions are considered necessary components of a fiscal federalism involving some sort of central government control in local affairs, a design which can be termed "administrative federalism". In this comprehensive book, Bernard Dafflon introduces the reader to the institutional complexities of fiscal controls in European local public finance. The authors explore the issues of government budgeting and borrowing, with the ultimate aim of understanding how mechanisms of fiscal discipline are established and function. Ten European countries are scrutinized on the basis of ten key issues including local budgetary policy-making, the policy effects of local budget deficits and public debt, the rules of amortization and debt instalment, whether extensive fiscal controls promote budget accountability and discipline, and how the Maastricht criteria concerning deficit and debt can be implemented. They go on to highlight the complicated mix of rules, administrative routines and co-operative arrangements through which each country implements their individual budget controls.