Fiscal issues in post-communist economies: a pragmatic and aggressive fiscal rule

This paper illustrates why a tough fiscal policy in East Europe may be rethought. Western economic policy theories may be fashionable but sometimes fail when applied to transition economies. It is advanced a new proposal for guiding fiscal policy where top priority is given to the ratio government debt/GDP and not to implement a tough deficit policy. Selected transition economies have low debt, then a more pragmatic economic strategy combined with a feasible and wise budget rule on fiscal policy may build up a scenario of economic recovery and sustainable membership in a perspective enlarged European Union.