Explaining the Divergence in German and French Public Finances

Author:

Eisl Andreas1

Affiliation:

1. Jacques Delors Institute and Centre for European Studies and Comparative Politics, Sciences Po , Paris , France

Abstract

Abstract In this contribution, I discuss the divergence of German and French public finances over the course of the last two decades. Major gaps in public deficit/debt levels and debt service costs have opened even under the presence of a common fiscal framework at the EU level. To explain these differences, I focus on three elements: the (non-)perception of budgetary and socio-economic crisis, differences in demographic conditions, and contrasting approaches towards the role of rules and expertise in fiscal policymaking. The contribution illustrates these points by providing two concise case studies on key developments in fiscal policymaking and institutions since the 1990s. I conclude with a brief reflection on German and French fiscal policymaking in the years to come.

Publisher

Walter de Gruyter GmbH

Reference31 articles.

1. Blanchard, O. 2023. Fiscal Policy under Low Interest Rates. Cambridge: MIT Press.

2. Blöndal, J. R. 2001. “Budgeting in Sweden.” OECD Journal on Budgeting 1 (1): 27–57. https://doi.org/10.1787/budget-v1-art4-en.

3. Bluth, C. J. 2016. The Political Economy of National Fiscal Rule Reform in EU Countries. Dissertation: University of Cambridge.

4. BMGSS [Bundesministerium für Gesundheit und Soziale Sicherung]. 2003. “Nachhaltigkeit in der Finanzierung der sozialen Sicherungssysteme.” Bericht der Kommission [Rürup-Kommission]. http://www.portal-sozialpolitik.de/uploads/sopo/pdf/2003/2003-08-28-Ruerup-gesamt.pdf.

5. BMF [Bundesministerium der Finanzen]. 2005. Bericht zur Tragfähigkeit der öffentlichen Finanzen.

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