Rado Bohinc

Legal Implications of EU Economic Governance for Public Finance in a Member State

Introduction

Legal implications of eu economic governance for public finance in a member state. Explore the legal implications of EU economic governance reforms on Member State public finance, focusing on the European Semester, fiscal rules, and Slovenia's compliance.

Abstract

This research analyses the legal implications of the EU economic governance framework reforms for the public finance system of a Member State (MS). In the article, we first present theoretical insights regarding the European model of economic governance. We discuss the questions of the economic sovereignty of MSs, the balance of economic and social goals, the democratic nature of procedures in relations between EU authorities and MSs, the application of EU law versus intergovernmental cooperation, legal sanctions for MSs, and violations of the EU fiscal rules, etc. This article discusses the 10-year development and tightening of the legal framework of European economic governance with an analysis of the legal bases for the obligations of MSs in the European Semester (ES) process and the legal sanctions they suffer in the event of a violation of European rules. The timeline of the ES, in particular, is presented both by deadlines (months) and by documents that must be submitted for assessment by the MSs or those that they receive from EU authorities and bodies. An analysis follows on the effect of the presented EU regulations on the development of an MS’s legal order in the field of public finance - in this case Slovenia’s. This analysis specifically focuses on the constitutional and legal framework of fiscal rules and the annual budget preparation and execution laws. The analysis shows the all-round conformity, even subordination, of the Member States’ constitutional order and legislation on public finances to the European economic governance through the agreed process of the European Semester.

Review

This article tackles a critically important and timely subject: the legal implications of the evolving EU economic governance framework on the public finance systems of its Member States. The research promises a comprehensive exploration, beginning with theoretical insights into the European model of economic governance, addressing fundamental questions of economic sovereignty, democratic legitimacy, and the balance between economic and social goals. By examining the tightening of the legal framework over a decade, and detailing the legal bases for obligations and sanctions within the European Semester, the article sets a strong foundation for understanding the intricate relationship between EU authorities and national fiscal policies. A significant strength of the research lies in its dual approach, moving from a broad theoretical and legal overview to a specific, in-depth case study. The detailed presentation of the European Semester's timeline, including deadlines and required documentation, provides practical insight into the operational mechanics of EU governance. This general analysis is then powerfully concretized through the examination of Slovenia's experience, focusing on how EU regulations have shaped its constitutional and legal framework for fiscal rules and budget preparation. This specific application allows the research to move beyond abstract concepts to demonstrate tangible impacts on a national legal order. The article's key finding – the "all-round conformity, even subordination," of Member States' public finance legislation to European economic governance through the European Semester – represents a profound conclusion. This finding underscores the significant transfer of fiscal sovereignty and the deep integration fostered by the EU's governance structures. By combining theoretical grounding, detailed legal analysis of the European Semester, and a focused national case study, this research offers a valuable contribution to understanding the contemporary landscape of EU economic integration and its far-reaching consequences for national legal systems and public finances.

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