A Comparative Evaluation Study of the Stability and Convergence Programs of Six European Union Member States

Abstract

The member states of the European Union have common goals with the aim to increase their competitiveness and knowledge through sustainable growth. In order to cope with globalization, Europe has to be innovative and economically strong as a whole. The integration of Europe has created more and more close relations between member states; modifications of these are the European Monetary Union (EMU), Broad Economic Policy Guidelines (BEPG) and the Stability and Growth Pact (SGP).

This study concentrates on examining the Stability and Convergence programs in six European Union member states through evaluation and comparison during a three-year-period. It brings to comparison the different means and outcomes of the states in their programs in the demand of the Stability and Growth Pact. The problem is that there are no specific guidelines and examples of choices of the reforms and policies in the context of the guidelines of the SGP and BEPG. The aim is to find through comparison and evaluation similarities and differences in the realization of policies and public interventions, and through this examination to find some specific actions for models of performance. The evaluative comparison of the member states programs has a few main topics that focus on: public and economic administrations, policy reforms and the convergence criteria of the EMU. The main goal is to compare six EU -member states and eventually to create examples of actions that in theory would help or give some kind of advantage in the creation of similar programs in the future. These states are Finland, France, Germany, Italy, Spain and Sweden.

In order to deal with the general problems (the ageing of the population, declining tax revenues and unemployment) states implemented structural reforms and applied policies that were similar most of the cases. As a conclusion of the research, some findings could be made. In the procedure of planning structural reforms or making new policies, the study suggests that some points should be taken into account at the planning stage: in general strict control and follow-up to the planned procedures, reduction of bureaucracy, taking into serious account the measures of liberalization and privatization, creating incentives to supplementary pension schemes and developing the taxation in the field of income and corporate taxation.