Register  |  Login  |  Inquiries  |  Sitemap |  
Advanced Search
Journal of Economic Integration 2022 December;37(4) :559-588.
Fiscal Stimulus in the European Union to Stabilize the COVID Shock

Séverine Menguy 

Faculté Sociétés et Humanités, Université Paris Cité, France
Corresponding Author: Séverine Menguy ,Email:
Copyright ©2022 Journal of Economic Integration
We document fiscal policies adopted in 2020 in five major European Union (EU) countries to deal with the COVID-19 pandemic. Then, we show the correlations between fiscal indicators and GDP growth. Economic stabilization was easier in countries where the budget deficit and the public debt were relatively small, with more room for maneuvers to conduct a counter-cyclical fiscal policy. Besides, the increase in public expenditure (cash transfers) did not always correlate with economic growth, whereas preserving government revenue was important in the case of tax cuts. More precisely, regarding the fiscal revenues of the EU member countries in 2020, reducing the weight on corporate income taxation, to sustain production supply and wealth creation by firms, was correlated with higher economic growth. Stylized facts show that the recession was weaker in countries where the relative weight of indirect taxation on household consumption increased, as in the Nordic countries.

JEL Classification
E62: Fiscal Policy
E65: Studies of Particular Policy Episodes
H12: Crisis Management
H51: Government Expenditures and Health
Keywords: COVID-19 | European Union | fiscal policies | capital taxation rate | consumption taxation rate | economic growth
PDF Links  PDF Links
Full text via DOI  Full text via DOI
Download Citation  Download Citation
Editorial Office
Center for Economic Integration, Sejong University, 209, Neungdong-Ro, Gwangjin-Gu,
Seoul, 05006, Korea
TEL : +82-2-3408-3338    FAX : +82-2-6935-2492   E-mail :,
Browse Articles |  Current Issue |  For Authors and Reviewers |  About
Copyright© by Center for Economic Integration.      Developed in M2PI