The first clarification must be that we shall interpret ‘fiscal policy’ in a very wide sense, i.e. as embracing the whole corpus of public finance matters and not just macro-economic aspects such as anti-recession or anti-inflation policies. Accordingly we shall start by looking at the role of fiscal policy, as thus defined, in a single country, ignoring international aspects; then consider the consequences of allowing for international relationships; move from there to the problems of a free-trade area or customs union; then proceed to those of the EEC itself. The section following will examine the meaning and role of the harmonisation of taxes (and where relevant, other aspects of public sector policy) in the EEC, with a strong accent on the issues involved in the removal of barriers to flows of labour, capital and goods. The next section will encompass the role of the Community Budget—what it has been so far, what it is likely to be in the near and further future, and so on. Finally, we shall draw together the threads of the discussion in a brief section of conclusions.


Fiscal Policy Member Country Common Agricultural Policy Custom Union Common Market 
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  1. 1.
    See A. R. Prest ‘Government Revenue, the National Income and All That’ in R. M. Bird and J. G. Head, Modern Fiscal Issues (Toronto: University of Toronto Press, 1972 ).Google Scholar
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    e.g. R. W. Bahl, ‘A Regression Approach to Tax Effort and Tax Ratio Analysis’ I.M.F. Staff Papers, November 1971.Google Scholar
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  6. 9.
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  7. 10.
    M. Sato and R. M. Bird, ‘International Aspects of the Taxation of Corporations and Shareholders’, I.M.F. Staff Papers, July 1975.Google Scholar
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  12. 45.
    See J. D. R.Adams and J.Whalley, The International Taxation of Multinational Enterprises (London: Institute for Fiscal Studies and Associated Business Programmes, 1977).Google Scholar

Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 1979

Authors and Affiliations

  • Alan R. Prest

There are no affiliations available

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