The Independent Authority for Fiscal Responsibility (AIReF) reports the first Medium-Term Fiscal and Structural Plan (MTP) which replaces in the new European fiscal governance framework the Stability Program Update as the central element of the new European fiscal framework. The MTP while it may be in line with the European Commission’s June guidance, does not provide sufficient detail to be considered a useful medium-term budgetary planning tool.
The net expenditure path is the reference variable for monitoring compliance with the commitments acquired in the new European rules framework. AIReF’s analysis of the net expenditure growth path shows that it is necessary to adopt additional measures to those included in its scenario at constant policies to ensure compliance.
