Assessment by the Fiscal Council: Compliance of fiscal policy with the fiscal rules on the basis of the draft Stability Programme 2019 and the proposed Ordinance on the framework for the preparation of the general government budgets for the 2020-2022 period
The Fiscal Council, after reviewing the draft Ordinance on the framework for the preparation of the general government budgets and the draft Stability Programme 2019, finds that in the 2019-2022 period the expected fiscal developments are outside the bounds of the fiscal rules in 2019. From 2020 on the projections set out in the submitted documents are set near the limit values of the fiscal rules but are exposed to significant risks. These risks arise in particular as a result of various economic policy measures which have been announced and have not yet been taken into account in the submitted documents, but are also related to the macroeconomic environment. The persistence of a favourable economic developments allows for the adoption of the necessary structural measures that will ensure long-term fiscal sustainability, particularly given the increasing fiscal pressures associated with the ageing of the population.
The Fiscal Council, after reviewing the draft Ordinance on the framework for the preparation of the general government budgets and the draft Stability Programme 2019, finds that in the 2019-2022 period the expected fiscal developments are outside the bounds of the fiscal rules in 2019. From 2020 on the projections set out in the submitted documents are set near the limit values of the fiscal rules but are exposed to significant risks. These risks arise in particular as a result of various economic policy measures which have been announced and have not yet been taken into account in the submitted documents, but are also related to the macroeconomic environment. The persistence of a favourable economic developments allows for the adoption of the necessary structural measures that will ensure long-term fiscal sustainability, particularly given the increasing fiscal pressures associated with the ageing of the population.