Fiscal policy in Europe: the case of the Basque Country

One of the most important challenges that the member states of the European Union have before them lies in future decisions that will have to be adopted in relation to fiscal policy. Most of the economies share the aim of achieving public deficit reductions, without increasing fiscal pressure unduly, and through measures to control public expenditure, as well as the problems derived from fiscal integration and fiscal reform. The Basque Country is a region endowed with most of the instruments of economic policy, fiscal policy included. The“Concierto Económico” (Economic Agreement) means that the Basque Country can regulate and collect all taxes of the tax system in an autonomous manner, as any other member state of the European Union can. That is why all the above mentioned questions are as relevant to the Basque Country as they are to all other countries. This is especially true at a moment where initiatives of a structural character are all the more necessary, but where also considerable weight has to be laid on measures tailored to the current circumstances which not only enable us to get out of the crisis as quickly as possible, but also promote investment, improve competitiveness and reduce unemployment as well. Explains and analyses the main current problems of fiscal and financial policy from the particular perspective and initiative of the Basque Country.