Fiscal Rules and Strategies under Externalities and Uncertainties (FIRSTRUN)

The FIRSTRUN project is a European Union funded multinational research project that aims to investigate the fiscal policy coordination in the EU, to assess the coherence of the recent reforms in the economic governance framework, and to identify reforms that could fill possible gaps in the current EU governance framework.

To this end, the FIRSTRUN project pursues the following interrelated goals:

  • to assess the effectiveness of the enhanced EU economic governance in securing fiscal sustainability and effective stabilisation
  • to quantify the importance of fiscal policy spillovers and the gains from fiscal policy coordination in the EU
  • to evaluate the potential role of new shock-absorbing mechanisms
  • to design fiscal policy strategies that take into account the rules of the reinforced Stability and Growth Pact and other components of the EU economic governance
  • to incorporate the key rules of the enhanced Economic governance into applied models that are used for practical fiscal policy evaluation
  • to investigate the institutional mechanisms for ensuring fiscal discipline, better fiscal policy coordination and how their legitimacy can be assured in the light of the growing disquiet about EU policies

More information is available from the FIRSTRUN project website:

The project is undertaken by a consortium of EU research institutes and universities.

The project is delivered through a series of work packages, covering

  • Fiscal policy coordination and cross country spillover effects
  • Ex ante policy coordination: the new EU fiscal rules
  • A fiscal union for the EMU: Why and which one?
  • Monetary-fiscal policy mix
  • Fiscal rules and long-term sustainability
  • Governance, institutional mechanisms for fiscal policy coordination and their legitimation
  • Dissemination and outreach
  • Scientific coordination and project management

Timescale and funder

The project is funded under the EU Commission’s Horizon 2020 framework. It began in March 2015 and will be completed in February 2018.

Research programmes