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

The Case of Slovenia

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.