Paper/Speech Details of Conference Program for the 26th NISPAcee Annual Conference Program Overview General Session Author(s) Mihaela Tofan University "Alexandru Ioan Cuza" Iasi Iasi Romania Vatamanu Anca Florentina, Title Fiscal Responsibility Legal Framework - New Paradigm for Sustainability in the EU File Paper files are available only for conference participants, please login first. Presenter Mihaela Tofan Abstract Abstract: The article presents the statute of fiscal responsibility laws at the EU member states legal order and the effects this regulation bring for challenges of public finance sustainability in the EU. The implications of recent global financial crises and the deterioration of the fiscal sustainability emphasized the interest of academics and policymakers for fiscal responsibility regulation. Thus, in the light of the events that created the economic conjuncture manifested in the last years, the solidity of public finances has reached an impasse and it needs to be enhanced. One of the mechanisms to do this is by using fiscal laws, institutions and methods that put constraints on policy-makers. One of the objectives of this paper is to approach most of the literature which addresses the topic of fiscal responsibility laws and challenges of public finance sustainability in the EU and to analyse the available research results by identifying the key definitions, advantages and disadvantages of each of the topics. Our study will synthesize some of the new revealed key points and proposal of the literature, presenting the statute of fiscal responsibility laws at the EU level and the challenges they generate for public finance sustainability. Fiscal responsibility legal frameworks and fiscal rules are subjects of wide interest in the EU, as member states are looking for methods to ensure long-term fiscal policies and debt sustainability, in respond to the region’s current feature in the economic and public administration sector. This study gives some responds to the ongoing policy discussions on the importance of having a efficient regulation for fiscal policy, observing larger output losses and increases of the public debt manifested during financial turmoil. The conclusion that putting restraints on governments by limiting public debt, expenditure and deficits levels, and therefore the size of public investments, determine lower economic growth levels, we can also say that the restraints of governments determine them to spend more efficiently is further developed. The paper proposes to invest more wisely in order to obtain better results regarding public finance sustainability. Keywords: Fiscal responsibility laws, fiscal institutions, public finance sustainability
