Comment
The onset of the global financial crisis was quickly followed by a substantial increase in government borrowing in many European countries. To offset this, packages of tax rises and spending cuts were implemented in many countries. The approaches taken have shown similarities but also important differences – in terms of the reliance on tax rises versus spending cuts, which areas were cut, and the types of households affected. A new special edition of the journal Fiscal Studies, launched today at an event in Brussels, looks at the impact of the Great Recession on the public finances and the fiscal policy reforms implemented in France, Germany, Ireland, Italy, Spain and the United Kingdom.