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Fiscal Stimulus Measures in Europe, 2009 – Government Expenditure
Measures
Public investment, support for business, infrastructure and research
Social expenditure
Housing, labour
market, education
expenditure
Other spending
Labour market package – short-time work
(0.1% of GDP).
Austria
Increases in social
benefits
(0.1% of GDP).
Belgium
Bulgaria
Higher capital spending
(0.1% of GDP).
Cyprus
Increase of public infrastructure investments
(1.2% of GDP);
Boosting tourism promotion and encouraging domestic tourism
(0.13% of GDP).
Czech Republic
Infrastructure investment
(0.4% of GDP).
Denmark
Building repair and maintenance (0.1% of GDP);
Municipal investments
(0.1% of GDP);
Green transport infrastructure (0.1% of GDP).
Reduction in the tax
wedge on labour
through subsidies
(0.1% of GDP).
Acceleration of payment of invoices
(0.1% of GDP).
Application of the
minimum VAT rate on
building land
(<0.1% of GDP).
Compensating measures offsetting the impact of the increase on
the excise duty on
petrol (0.15% of GDP).
Increase in pensions
(1% of GDP);
Increase in allocations
for salaries in the
budgetary sector by
10% (0.3% of GDP).
Indexation of pensions
(0.2% of GDP).
Government consumption and wages
(-0.6% of GDP).
Advancement of enforcement of the new
Labour law
(0.2% of GDP);
Increase in pensions
(0.8% of GDP).
Estonia
Finland
Supporting enterprises
access to finance
(0.2% of GDP);
Boosting infrastructure
investment (0.1% of GDP).
France
Additional public investment (-0.3% of GDP);
Sectoral aid for housing
and automobile industry
(0.1% of GDP).
Germany
Investment, incl. infrastructure (0.3% of GDP);
Industry support
(0.1% of GDP).
Boosting construction
of rental housing
(0.05% of GDP).
Social measure in
favour of the low income households
(0.1% of GDP).
Funding municipal
mergers
(0.05% of GDP).
Making work pay
measure
(0.1% of GDP).
Labour market support Environmental pre(0.1% of GDP).
mium (0.2% of GDP);
Higher expenditure on
the health-care sector
(0.2% of GDP).
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Fiscal Stimulus Measures in Europe, 2009 – Government Expenditure
Measures
Public investment, support for business, infrastructure and research
Social expenditure
National Fund for Social Cohesion
(0.2% of GDP).
Greece
Housing, labour
market, education
expenditure
Restraining public
sector employment
growth
(0.3% of GDP);
Cuts in the public sector’s high-level officials’ remuneration
(<0.1% of GDP).
Other spending
Public wages freezing
for 2009
(0.2% of GDP);
10% cut in elastic
public expenditure
items.
Hungary
Modernisation and subsidy programme for district heating schemes
(0.1% of GDP).
Capping the 13th
monthly pension payment for pensioners at
the level of the average pension and abolishing it for some
groups of early pensioners
(-0.2% of GDP);
Partly compensated
suspension of the 13th
monthly salary in the
public sector and a
nominal freeze of public wage (net impact:
(-0.25% of GDP);
Savings in social
transfers
(-0.15% of GDP).
Cuts in chapteradministered and
other government
programmes (e.g.
transport development
and environmental
protection;
(-0.25% of GDP).
Ireland
Reprioritisation of public
investment
(-1.2% of GDP).
Social welfare package (0.3% of GDP);
Savings in social
transfers
(-0.3% of GDP);
“Pension levy” on
public sector wages
(-0.4% of GDP);
Reduction in public
service payroll
(-0.2% of GDP);
Postponement of
agreed pay increase
(-0.1% of GDP).
Reduction in overseas
development aid
(-0.1% of GDP).
Italy
One-off income support to households
(0.2% of GDP).
Rationalisation of
government resources
(-0.3% of GDP).
Latvia
Increase in social
payments
(2.1% of GDP).
Lithuania
Higher social transfers Cuts in public sector
other than in kind
wages (-0.7% of GDP).
(0.9% of GDP);
Reduction of contributions to pension funds
(2nd pillar; 0.48% of
GDP).
Reduction on transfers
to local governments
(-0.5% of GDP);
Cuts in current government expenditure
(-0.9% of GDP).
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Fiscal Stimulus Measures in Europe, 2009 – Government Expenditure
Measures
Public investment, support for business, infrastructure and research
Social expenditure
Housing, labour
market, education
expenditure
Other spending
Increase by 2% in oldLuxembourg Increase in government
investment (0.7% of GDP). age and assimilated
pensions
(0.2% of GDP);
Encouragement of the
recourse to partial
unemployment
(0.4% of GDP).
Malta
Education
(0.1% of GDP).
Investment projects related to industry
(0.1% of GDP);
Higher incentives for investment (0.2% of GDP);
Support for tourism
(0.1% of GDP);
Investment in educational
institutions (0.3% of GDP);
Infrastructure – roads,
maritime facilities
(0.2% of GDP).
Netherlands Increase in infrastructure
projects (-0.1% of GDP).
Reduction in energy
subsidies
(-1% of GDP);
Reduction in other
subsidies
(-0.4% of GDP);
Environmental measures (0.1% of GDP);
Sustainable development at local level
(0.1% of GDP).
Labour market measures (e.g. part-time
unemployment;
(-0.1% of GDP);
Increase in education
expenditures
(-0.3% of GDP).
Poland
Investment (0.3% of GDP); Subsidies
Investment (0.6% of GDP). (-0.2% of GDP)
Intermediate consumption
(-0.7% of GDP).
Portugal
Special support to activity, Support to household
income (0.2% of GDP).
exports and SMEs
(0.1% of GDP);
Support to firms
(0.1% of GDP);
Renewal of schools premises (0.2% of GDP);
Investment (and support
to investment) in energy
and telecommunications
infrastructure
(0.2% of GDP).
Romania
Public investment
(1% of GDP).
Instituting a minimum “ Cuts in personnel
social” pension
expenditure
(0.1% of GDP).
(-0.9% of GDP).
Slovak Republic
Subsidy of purchase of
new cars (0.1% of GDP).
Changes in welfare
measures
(0.5% of GDP).
Slovenia
Support for SMEs and
start-up companies
(0.1% of GDP);
Subsidies for investment
in new technologies and
R&D (0.2% of GDP).
Lower expenditure on
goods and services
(-1.3% of GDP).
Wage subsidies for
Increase in specific
shorter hours worked transfers in kind
(0.6% of GDP);
(0.1% of GDP).
Public sector wage bill
(0.2% of GDP).
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Fiscal Stimulus Measures in Europe, 2009 – Government Expenditure
Measures
Public investment, support for business, infrastructure and research
Spain
Central Government Fund
for Local Public Investment (0,72% of GDP);
Fund to improve certain
strategic sectors
(0.27% of GDP).
Sweden
Increased investment in
and maintenance of infrastructure (0.2% of GDP);
Increased education and
research expenditure
(0.1% of GDP).
United
Kingdom
Front-loading capital
spending (0.2% of GDP);
Support for business and
industry (0.2% of GDP).
Social expenditure
Housing, labour
market, education
expenditure
Other spending
Increased coaching,
activation and training
of unemployed
(0.1% of GDP) .
Social and housing
expenditure
(0.2% of GDP).
Source: European Commission (2009), Public Finances in EMU 2009, European Commission Directorate-General
for Economic and Financial Affairs, pp. 198-260.
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