FISCAL CONSEQUENCES OF THE SUSPENSION OF FISCAL RULES IN THE EUROPEAN UNION

A specific feature of the European Economic and Monetary Union is centralized monetary policy under the competence of the European Central Bank and decentralized fiscal policy under the competence of the national authorities of the member states. In order to ensure the conduct of a sound fiscal policy by each member state, it was necessary to establish certain common rules for the conduct of fiscal policies at national levels, that is, to establish binding fiscal criteria, or more precisely fiscal limits, which are based on the principle of sustainable fiscal policy. However, the application of fiscal rules in the European Union was suspended in 2020 due to the crisis caused by the corona virus. The main analysis and the aim of the research in this paper is the analysis of the impact of activation effects on the fiscal stability of the countries of the European Union. Descriptive and comparative analysis will determine the effects of the suspension of the fiscal rules of the European Union countries. The analysis shows the importance of the existence of fiscal rules for maintaining the fiscal stability of EU member states, which is one of the prerequisites for macroeconomic stability and economic growth.