Combination of fiscal rules and fiscal council, insights for westernd Balakan Countries

Abstract The debate of fiscal policy austery versus discretion is still open, although new lessons coming from two global crisis of 2009 and Covid-19. In order to manage macro fiscal sustainability in different countries have been introduced fiscal rules and fiscal councils, however the overall Global public debt to GDP has been in increased from 2009, and the medium-term projection of IMF shows highest level of before Covid-19 crisis around the World. Even the presence of fiscal rules, Central governments in different countries have suspended fiscal rules, by following countercyclical fiscal policy during global crisis. Recently there is increased focus on what are the best perspectives on combining fiscal standards, fiscal discipline and fiscal rules. IMF database of fiscal rules and fiscal council implementation around the World provides crucial information on quantitative analyses of their efficiency during the time of implementation. From the medium-term perspective, Western Balkan counties (WBC) must implement EU fiscal rules, as they are under the path of integration, however the actual situation public debt is worse off. Insights of combination of fiscal rules and council should be considered for WBC in order to achieve fiscal sustainability and boost integration path towards EU.