FISCAL CONSOLIDATION IN THE BALTIC STATES

Abstract

The strong growth performance of Baltic states, in the period 2000-07, was accompanied by rapid changes across the economy. Between 2004 and 2007 the Baltic statesstood among the EU countries for their high growth rate. The global financial crisis hit the Baltic statesmuch harder than other countries in the EU. In order to improve public finance sector were necessary radical consolidation. The aim of the article is to show the impact of the consolidation processes to improve the financial performance of the public finance sector.

Keywords

• baltic states
• macroeconomic situation
• budget deficit
• fiscal consolidation