OECD recommends Europe reform tax rules

 The Organization for Economic Cooperation and Development (OECD) recommended the European Union (EU) to re-evaluate fiscal rules to better guarantee sustainability of public finances and to enhance budgetary policies. In an economic study, OECD urged EU to strengthen the involvement of independent fiscal institutions, and to improve the budgetary frameworks in the medium term with positive incentives.

In an economic study, OECD urged EU to strengthen the involvement of independent fiscal institutions, and to improve the budgetary frameworks in the medium term with positive incentives.

Another proposal is to quickly roll out national recovery plans to carry out structural reforms and investments based on cost-benefit relationship.

OECD believed that EU should conduct a tough evaluation on the economic impact of the European fund against unemployment due to the Covid-19 pandemic and another study on the recovery fund.

Regarding fiscal support, OECD suggested not withdrawing it ‘prematurely’, but continuing to support affected sectors until a firm recovery is achieved.