Strong fiscal rules in the EU do not guarantee good fiscal health
Monday, 21 January 2019

General government budget balance and stability in the EU

EU countries have developed the strongest global fiscal framework. They use three types of fiscal rules - budget rules setting limits on government structural deficits (typically 0.5% GDP), debt rules setting limits on debt-to-GDP-ratios (60%), and expenditure rules setting targets for the growth of government expenditures (based on the growth of potential GDP).

ERA rates TURKEY BB, outlook Stable
Friday, 18 January 2019

The unsolicited credit rating BB assigned to Turkey stems from constant indebtedness growth paralleled with limited international reserves, the low risk of public debt non-servicing, high midterm inflation, sustained negative external balances, and the deteriorated quality of monetary regulation.

End of consultation period and publication of a final version of GRE methodology
Friday, 11 January 2019

After end of the consultation period for the proposed new Methodology for Analysing Relationships Between Rated Entities and the State under the International Scale (Methodology), the final methodology was published.

ERA closed the consultation period without comments. ERA starts using this methodology in first half of 2019.

Link to the Methodology