The Relationship between the Budgetary Fiscal Policy and Macroeconomic Indicators, a Comparative Study of Germany-France versus Romania-Bulgaria

Fiscal-budgetary policy in the current economic context is a challenge for all EU27 governments. The literature, although consistent on this topic, still does not provide sufficient modeling-based solutions for decision-makers. The objectives of the study are to identify relevant indicators for fiscal-budgetary policy analysis, to build a related statistical database, to conceptualize a fiscal-budgetary policy efficiency model, to test and validate this model and the working hypotheses, to formulate relevant conclusions on the influence of macroeconomic indicators on fiscal-budgetary policy elements and to establish a ranking of fiscal-budgetary efficiency at the level of the four Member States in the European context. As a result, our scientific approach becomes necessary and is based on econometric research on the correlations between fiscal-budgetary policy elements and the evolution of macroeconomic indicators. The main results of the study are the conceptualization of the regional model of correlation between budgetary fiscal policy and macro indicators and the identification of the differentiated influences of macroeconomic elements on the fiscal-budgetary policy according to the level of development of the Member States. The results are useful for supranational decision-makers in setting medium- and long-term fiscal and budgetary policy measures, as well as for economic entities that can adjust their macroeconomic risk behavior and future economic development strategies based on this information.