EU FISCAL POLICIES ON PROCESS FOR NEW MEMBER STATES

The reforms in recently acceded countries in EU have been continuing for more than a decade and, it's apparent that these countries will positively or negatively be influenced by EU regulations as well. Actually, the new entrants and the EU candidate counties would be affected by the monetary plus fiscal policy directives of EU The Maastricht criteria had modified the regulatory objectives and harmonization implements on monetary and fiscal policies of the member states. By that way, European central bank has now provided a definition of price stability, inflation less than but close to 2%. It's clear that, this Maastricht criterion is not well suited for newly acceded countries because targeting such a low inflation could require a too tight monetary policy. Thus, the fiscal policy is also assisting the monetary policy that was used for struggling with the hyper inflation. As a struggling instrument, the tight monetary policy could not be sustained by impracticable fiscal policy or vice versa. From that point of view, in this study, the importance of fiscal policy for the low inflation targeting will be analyzed from the Maastricht criteria perspectives. Not only the candidate or new member countries which have to be focused on their fiscal policies, but also the question about why they have to pay attention on their fiscal policies will be discussed