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Fiscal Impact Assessment of Structural Reforms

This publication presents case studies from nine countries of South East Europe, which were prepared by local experts, to examine how the fiscal impact of structural reforms and other sectoral policies is incorporated into annual budgets and strategic macro-fiscal documents. The studies describe the processes that are currently in place and identify areas that can be strengthened through capacity development activities, as outlined in the final chapter. Each of the authors points to the need for better fiscal policy coordination among budget institutions. Countries of the Western Balkans are on a long, often complex path to EU membership. This process requires substantial adjustments to candidate countries’ economic systems, including two important ones that are required by the so-called Copenhagen criteria. The first of these requires that a candidate country be full-fledged market economy, and this has been largely met by the countries in the region. On the other Copenhagen criterion—that a candidate country should be able to sustain its economy amid competitive pressures on the single European market—countries of the region still have a long way to go.[...]