In response to the call for a proactive and nuanced debate on the reconciliation process between Governmental Accounting (GA) and National Accounts (NA) within the broader context of the ongoing public sector accounting reform in Europe, this study aims to investigate the dialogic relationship between Eurostat and EU Member States within the Excessive Deficit Procedure (EDP).
To address this gap, the study involves a content and textual analysis of Eurostat EDP visit reports conducted between 2021 and 2024 in the 27 Member States, focusing on the paragraph dedicated to the implementation of the accrual concept. Neo-institutional theory and the practice variability and adaptation framework have been adopted as theoretical lenses for critically reading the findings.
By focusing on the items under evaluation (i.e. taxes and social contribution, interest, EU funds and military expenditure), the analysis reveals that local adaptations and the fragmentation of data sources are among the main causes of the existing discrepancies between GA and NA. These divergences underscore deeper institutional tensions, as Member States struggle to balance external legitimacy with internal autonomy.
While the existing literature has extensively addressed the implementation of accrual accounting for GA purposes and the resulting variation in practices, few empirical studies have qualitatively examined the implications within the GA–NA reconciliation process. By filling this gap, the paper provides insights into the symbolic and strategic dimensions of compliance. Ultimately, the study offers empirical evidence to inform policymakers, practitioners and academics toward more coherent and comparable public sector financial reporting practices across Europe.
