SPB Newsfeed: CEF with EU and IMF Successfully Implemented Project in Support of PFM Reforms in SEE

High-level representatives from ministries of finance, line ministries and central planning authorities in South East Europe attended a High-level Policy Dialogue on Economic Governance in the region. The European Commission has been represented through Director of Strategy and Turkey at DG NEAR, Mr. Simon Mordue, and the International Monetary Fund through the Deputy Director of the Fiscal Affairs Department, Mr. Christopher Towe. The event held on September 18, 2015 concluded the Strategic Planning and Budgeting (SPB) project, delivered by the CEF since spring 2013, and funded by the European Union.

High-level representatives reflected on the reforms necessary to strengthen medium-term macroeconomic and fiscal frameworks, and to better integrate the fiscal impact of structural reforms in those frameworks. They discussed the related policy coordination and planning processes in South East Europe, and concrete challenges faced by countries in the region, in particular those posed by the EU pre-accession agenda.

The Policy Dialogue brought out challenges and good practice in South East Europe in assuring fiscal sustainability, creating fiscal space, preparing realistic macroeconomic forecasts, introducing program performance orientations in the budget, and applying fiscal rules. High-level representatives reflected on the need to strengthen sectoral fiscal programming through better policy coordination and assessments of the fiscal implications of structural reforms.

The Policy Dialogue has been moderated by the CEF-based IMF Regional PFM Advisor, Duncan Last, and CEF Associate Fellow, Professor Mojmir Mrak of the University of Ljubljana. Mr. Mrak concludes: “EU economic governance is gradually evolving, with increasing attention put on structural reforms that enhance economic growth. Today we have discussed a range of weaknesses and challenges that remain, in particular with respect to the fiscal programming of such reforms. Participants have emphasized the role of regional cooperation and of involving international partners in sharing of experiences and good practice. The CEF has been recognized as an important platform to facilitate this process.”

High-level representatives used the opportunity to thank the CEF for the successful delivery of the project, and expressed the need to continue and deepen what has been achieved through future action, engaging the different institutions involved in strategic planning and budgeting in a joint, regional effort. And, they outlined priority areas for further learning and networking activities, in particular to strengthen professional networks of finance officials across the region, and different sectors.

[A graphical summary of the discussion is available here, and photo impressions of the event can be accessed here.]