Is There Fiscal Convergence in the European Union?

ABSTRACT This article studies fiscal convergence in the European Union (EU) from 1995 to 2024 using the sequential panel selection method. We use an improved econometric method to analyze the sequence of convergence and the factors influencing convergence differences. The conclusions provide strong evidence that 21 of 27 countries have achieved fiscal convergence, whereas six countries, including Slovakia, Greece, Portugal, Italy, Slovenia, and Bulgaria, present nonconvergence characteristics. It also identifies that the degree of trade openness and economic growth affect the speed of fiscal convergence positively. The results have reference value for the study of the coordinated development of EU fiscal integration.