This article reviews the different types of fiscal rules and their properties with respect to
various objectives assigned to fiscal policy. Then, it provides a descriptive analysis of the fiscal
rules in force in the EU Member States. The characteristics of fiscal rules vary depending on the
sub-sector to which they apply. Fiscal rules applying to higher levels government are usually
incorporated into multi-annual budgetary framework whereas most rules applied to regional and
local governments rely preponderantly on annual schemes. Most of the fiscal rules applied to
regional or local levels governments are enshrined in constitution or law, while rules applying to
the whole of the general government sector are more frequently based on coalition agreements or
political commitments. Similarly, while rules for regional and local governments seem to have
relatively strong enforcement mechanisms, rules applying to general and central governments
generally don’t envisage ex ante defined actions in case of non-compliance. The analysis also
indicates that contract countries tend to have more fiscal rules applied to central government and
social security sectors while delegation countries have a higher number of fiscal rules implemented
at regional and local level
