- International Monetary Fund
- Published Date:
- April 2002
© 2002 International Monetary Fund
Production: IMF Graphics Section
Figures: Sanaa Elaroussi
Typesetting: Alicia Etchebarne-Bourdin
The Baltic countries: medium-term fiscal issues related to EU and NATO accession / Johannes Mueller … [et al.]—Washington, D.C.: International Monetary Fund, 2002.
- p. cm.—(Occasional paper. ISSN 0251-6365); 213
- Includes bibliographical references.
- ISBN 9781589061040
1. Fiscal policy—Baltic States. 2. European Union—Membership—Baltic States. 3. North Atlantic Treaty Organization—Membership—Baltic States. I. Mueller, Johannes, II. International Monetary Fund. III. Occasional paper (International Monetary Fund); no. 213.
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- List of Abbreviations
- I Overview
- II The Current Fiscal Position
- III Medium-Term Fiscal Policy: Theory and Evidence
- IV The Experience of Earlier Accession Countries
- V Medium-Term Fiscal Frameworks
- II 1. EU Accession Requirements on Taxation
- III 2. Fiscal Policy and Economic Growth
- IV 5. Macroeconomic Convergence
- V 6. EU Pre- and Postaccession Financial Instruments
- III 1. Public Debt Sustainability Under Alternative Assumptions
- IV 3. Earlier Accession Countries (EACs) and the Baltic Countries: Key Macroeconomic Indicators
- V 6. Estonia: Summary Medium-Term Fiscal Scenarios
- I 1. The Baltic Countries: Selected Economic Indicators
- II 2. The Baltic Countries and Selected Other Countries: General Government Expenditure and Tax Structure, 2000
- IV 3. Earlier Accession Countries (EACs) and the Baltic Countries: Real Convergence
- V 8. The Baltic Countries: Real Growth in Discretionary Spending Relative to 2001 Under Various Scenarios
The following symbols have been used throughout this paper.
… to indicate that data are not available;
— to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
– between years or months (e.g., 2000–01 or January-June) to indicate the years or months covered, including the beginning and ending years or months;
/ between years (e.g., 2000/01) to indicate a fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country”, as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.
This Occasional Paper is based on a staff background paper prepared for the 2001 and 2002 Article IV consultations between the International Monetary Fund and the Republic of Estonia, the Republic of Latvia, and the Republic of Lithuania. The paper describes the fiscal challenges of the three Baltic countries in their run-up to EU and NATO accession.
The paper is the product of a team effort of the Baltic Division of the European II Department. The project was initiated by Peter M. Keller, who also provided valuable guidance to the authors. The paper was prepared by a staff team led by Johannes Mueller and composed of Christian Beddies, Robert Burgess. Vitali Kramarenko, and Joannes Mongardini. The paper benefited from comments from Patricia Alonso-Gamo, Costas Christou, Christina Daseking, Robert A. Feldman, George Kopits, Bradley McDonald. Roger Nord, John Odling-Smee, Jerald Schiff, Axel Schimmelpfennig, Günther Taube, Nancy Wagner: and from the European Commission, Directorate-General for Economic and Financial Affairs (DG ECFIN). The authors would like to thank Alexandra Merlino for excellent research assistance; Jean Boyd and Julie Burton for superb secretarial assistance; and James McEuen of the External Relations Department, who edited the paper and coordinated its production for publication.
The views expressed in the paper are those of the authors and do not necessarily reflect the views of the national authorities, the IMF, or the IMF’s Executive Directors.
List of Abbreviations
Common Agricultural Policy
Currency board arrangement
Common External Tariff
Commonwealth of Independent States
Consumer price index
Common Transport Policy
European Commission, Directorate-General for Economic and Financial Affairs
Earlier accession countries (Greece. Ireland. Portugal, and Spain)
European Agricultural Guidance and Guarantee Fund
European Development Fund
European Investment Bank
European Free Trade Association
Economic and Monetary Union
European Regional Development Fund
European System of Accounts
European Social Fund
Belgium, France, Germany, Italy, Luxembourg, and the Netherlands
Foreign direct investment
Financial Instrument for Fisheries Guidance
Investment for Structural Policies for Pre-Accession
North Atlantic Treaty Organization
Organization for Economic Cooperation and Development
Pre-Accession Economic Program
Pre-Accession Fiscal Surveillance
Operation PHARE (Poland and Hungary Assistance for Economic Restructuring program; extended by the EU in 1990 to other eastern European states)
Purchasing power parity
Special Accession Program for Agriculture and Rural Development
Support to European Integration in Lithuania
Stability and Growth Pact