CORDIS Project
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FLASH investigates the impact of fiscal consolidation on different-sized firms during economic recovery. By analyzing firm-level data, the project aims to understand how spending cuts and tax increases affect business performance and financial health.
The global financial crisis and slow ensuing recovery have put severe strains on the fiscal positions of many OECD countries, raising serious concerns about fiscal sustainability, especially in the Euro Area.
The challenge facing these countries is how to bring debt down to safer levels in the face of a weak recovery.
Several EU governments undertook large fiscal consolidations plans that involved a combination of spending cuts and tax hikes, aiming at sustainably reducing public deficits and de…
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