engagement with other creditors. The reform agenda in key sectors (e.g., energy, transportation and health) was guided by the EC and World Bank expertise and, as in other programs, the authorities’ commitment to adhere to EU targets under the EDP framework helped anchor the fiscal consolidation plan. However, the larger than projected pro-cyclical impact of fiscal adjustment is a reminder of the need for constant flexibility in adjusting program targets and conditionality to the country’s evolving circumstances. ©International Monetary Fund. Not for
, given that it contributed effectively to the financing package and allowed burden sharing. The authorities’ commitment to adhere to the EU targets under the convergence program and the EDP framework played a key role in ensuring that medium term goals under the EU’s Growth and Stability Pact remained on track, which also helped anchor the fiscal consolidation ( IMF, 2012 ). 29. The 2011 SBA was a successful case of collaboration between an RFA and IMF, involving an effective division of labor with the EC focused on structural reforms. The objectives of the program
-transparence increase uncertainty about future fiscal policies and outcomes. The paper is structured as follows. In section II , we review the existing literature on the impact of fiscal rules on sovereign spreads. Section III presents stylized facts on noncompliance with the EU fiscal rules and the EDP framework. In section IV , we discuss the methodology and present the main results. Robustness checks are performed in Section V . Section VI exposes possible interpretations and policy implications. II. Literature Review A rich econometric literature documents that
and the Fund . 14 Support from the EU contributed effectively to the financing package and allowed burden sharing. The authorities commitment to adhere to EU targets under the convergence program and the EDP framework played a key role in ensuring that Romania’s medium-term goals under the EU’s Growth and Stability Pact remained on track, which also helped anchor the fiscal consolidation. 46. Post-program engagement with the Fund appropriately continues with a successor precautionary SBA . The successor SBA was approved upon completion of the seventh review in
accounts and fiscal statistics . The Treasury prepares the monthly “Comparative Statements” that compare budget outturns with the estimates by using the same administrative and economic classifications. The budget outturns shown in the December “Comparative Statements” are published every March after being fully reconciled with the annual financial statements. The cash-based Consolidated Fund deficit/surplus shown in the Treasury’s Financial Reports are reconciled with the accrual-based net lending/borrowing of the central government in accordance with the EDP framework