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Linkage to sustainability agenda



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Budget-Review-Germany

Linkage to sustainability agenda:
The review could be carried out alongside the analysis
that is conducted periodically for the Long-term Sustainability Report (see Section 4.3). In
this way, both the medium-term and longer-term issues specific to particular sectors could
be dealt with synoptically, and the overall policy messages/budgetary implications could
be integrated into the review.


BUDGET REVIEW: GERMANY
OECD JOURNAL ON BUDGETING – VOLUME 2014/2 © OECD 2015
44
In line with its mandate, the CEE publishes an annual report in mid-November on the
state of the German economy and expected developments; including opinions on the
long-term sustainability of the public finances (minority opinions are fairly common in
these reports). Since 2005, the government can request special reports or “Occasional
Reports” and may provide additional funding to the CEE to carry out this work. The CEE is
also tasked with preparing independent macroeconomic forecasts and long term
projections for the public finances of the whole general government sector. As part of its
analysis the CEE examines whether the debt brake and other fiscal rules are being
followed. While the CEE does not provide recommendations, it may discuss the viability of
different sets of options. Indeed a version of the current debt brake was originally
proposed by the CEE.
The CEE participates in the Working Party on Tax Revenue Forecasting and as of 2013
a representative of the CEE is also mandated to participate in the Independent advisory
council to the Stability Council.
The CEE does not have formal rights of access to information or a memorandum of
understanding in this regard. However it is located in the statistical office which facilitates
access to relatively good information, including some unpublished data. And the CEE is
able to take into account measures announced in the budget in their November forecasts. 
The government is required by law to respond to the Council’s annual report in
parliament within the eight weeks following its publication. This is done through the
government’s Annual Economic Report. Otherwise, the CEE’s authority rests mainly on its
ability to influence the public debate. Council members regularly appear in the media and
the annual report receives significant coverage.

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