- International Monetary Fund
- Published Date:
- April 2002
© 2002 International Monetary Fund
Production: IMF Graphics Section
Figures: Sanaa Elaroussi
Typesetting: Alicia Etchebarne-Bourdin
The Baltic countries: medium-term fiscal issues related to EU and NATO accession / Johannes Mueller … [et al.]—Washington, D.C.: International Monetary Fund, 2002.
p. cm.—(Occasional paper. ISSN 0251-6365); 213
Includes bibliographical references.
1. Fiscal policy—Baltic States. 2. European Union—Membership—Baltic States. 3. North Atlantic Treaty Organization—Membership—Baltic States. I. Mueller, Johannes, II. International Monetary Fund. III. Occasional paper (International Monetary Fund); no. 213.
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The following symbols have been used throughout this paper.
… to indicate that data are not available;
— to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
– between years or months (e.g., 2000–01 or January-June) to indicate the years or months covered, including the beginning and ending years or months;
/ between years (e.g., 2000/01) to indicate a fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country”, as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.
This Occasional Paper is based on a staff background paper prepared for the 2001 and 2002 Article IV consultations between the International Monetary Fund and the Republic of Estonia, the Republic of Latvia, and the Republic of Lithuania. The paper describes the fiscal challenges of the three Baltic countries in their run-up to EU and NATO accession.
The paper is the product of a team effort of the Baltic Division of the European II Department. The project was initiated by Peter M. Keller, who also provided valuable guidance to the authors. The paper was prepared by a staff team led by Johannes Mueller and composed of Christian Beddies, Robert Burgess. Vitali Kramarenko, and Joannes Mongardini. The paper benefited from comments from Patricia Alonso-Gamo, Costas Christou, Christina Daseking, Robert A. Feldman, George Kopits, Bradley McDonald. Roger Nord, John Odling-Smee, Jerald Schiff, Axel Schimmelpfennig, Günther Taube, Nancy Wagner: and from the European Commission, Directorate-General for Economic and Financial Affairs (DG ECFIN). The authors would like to thank Alexandra Merlino for excellent research assistance; Jean Boyd and Julie Burton for superb secretarial assistance; and James McEuen of the External Relations Department, who edited the paper and coordinated its production for publication.
The views expressed in the paper are those of the authors and do not necessarily reflect the views of the national authorities, the IMF, or the IMF’s Executive Directors.
List of AbbreviationsCAP
Common Agricultural PolicyCBA
Currency board arrangementCET
Common External TariffCIS
Commonwealth of Independent StatesCPI
Consumer price indexCTP
Common Transport PolicyDG ECFIN
European Commission, Directorate-General for Economic and Financial AffairsEAC
Earlier accession countries (Greece. Ireland. Portugal, and Spain)EAGGF
European Agricultural Guidance and Guarantee FundEC
European Development FundEIB
European Investment BankEFTA
European Free Trade AssociationEMU
Economic and Monetary UnionERDF
European Regional Development FundESA
European System of AccountsESF
European Social FundEU
Belgium, France, Germany, Italy, Luxembourg, and the NetherlandsFD1
Foreign direct investmentFIFG
Financial Instrument for Fisheries GuidanceISPA
Investment for Structural Policies for Pre-AccessionNATO
North Atlantic Treaty OrganizationOECD
Organization for Economic Cooperation and DevelopmentPAYG
Pre-Accession Economic ProgramPFS
Pre-Accession Fiscal SurveillancePHARE
Operation PHARE (Poland and Hungary Assistance for Economic Restructuring program; extended by the EU in 1990 to other eastern European states)PPP
Purchasing power paritySAPARD
Special Accession Program for Agriculture and Rural DevelopmentSEIL
Support to European Integration in LithuaniaSGP
Stability and Growth PactVAT