COMPARATIVE ANALYSIS OF FISCAL SYSTEMS AND POLICIES

Abstract

Although fiscal harmonization with regard to indirect taxation has been achieved right from the beginning of the European Union, as regards direct taxation, Member States have much more freedom of decision, which leads to the diversity of tax systems and to differences in competitiveness through the use of fiscal instruments. Therefore, we describe Romania's position in the European context regarding fiscal competitiveness. Taking into account the recent reforms implemented by the European countries, we have focused on the general tax burden and direct taxation, taking into account the indirect taxes and social contributions paid by both employers and employees. The present paper also makes a series of recommendations regarding the directions of evolution of the fiscal policy of the European Union in the next period. On the one hand, fiscal policy must be designed to support nominal and especially real convergence in the European Union. At the same time, fiscal policy must be flexible enough to alleviate any internal and external shocks generated by accession.

Keywords

• fiscal system
• fiscal policy
• public revenue