The Swiss debt brake as a model for sustainable fiscal policy

Masterarbeit aus dem Jahr 2016 im Fachbereich VWL - Fallstudien, Länderstudien, Note: 2,5, Technische Universität Dresden (Professur für VWL, insb. internationale Wirtschaftspolitik und Wirtschaftsforschung), Veranstaltung: Masterarbeit, Sprache: Deutsch, Abstract: The aim of this study is to analyze the Swiss debt brake as a model for controlling public finances and achieving more effective fiscal policies. Furthermore this study thus strives to contribute to the evolution of fiscal policy. While the benefits to the economy via more effective fiscal policy are straightforward, better fiscal performance is not only a matter of economics and economic welfare: ensuring all citizens' trust and belief in public finance forms a major part of democracy (and indeed of every political system). The debate over effective fiscal policies should not neglect the way in which citizens consider sustainable fiscal policy to be a central issue for future generations and a general question of responsible government and legitimacy. Before the 2015 parliamentary elections in the United Kingdom in 2015, the British Labour Party made fiscally responsible behavior its top priority in the election campaign. The Budget Responsibility Lock, as the fiscal plan is called in the Labour manifesto, puts a premium on the national finances by making the plan the basis of all proposed campaign plans. The commitment to sound public finances is on the cover of the manifesto, and Ed Miliband, leader of the Labour Party at the time, said his party was the party of fiscal responsibility. The party pledges to bind its policies to fiscally prudent behavior and to achieving deficit reduction every year. This focus on solid public finances is indicative of the heightened importance of fiscal responsibility in politics and society. Not only in Britain, but also in the majority of countries, both politicians and the public have realized the relevance of sustainable fiscal policy. But how can those in power materialize their electoral promises or make efforts to assert control of public finances?