just a big or even a Short thank you to all who have contributed to the conversation and those who have read it, even if being silent or though gritted teeth.  The PFM Board, in my opinion, provides an opportunity for all PFM practitioners to share with others their experiences and insights without the confines of the more institutional Blogs.  The PFM Community should use it in that spirit!

Thank you to Alban for managing the conversation and asking a pertinent question, and also to Lasha, Paul and Mauro.  I hope I met your expectations...a rhetorical question to finish!


John

MORE ON QUESTION 8

Let me add

- Strong analytical thinking,
- Capacity to absorb and filter a lot of financial data and info,
- Understanding that the PFM reform cannot be a linear process. Talking about Georgia, I felt the Government got in a bad deal when they agreed to link several specific conditions in the EU Budget Support contract to the PEFA scores!

QUESTION 8

John,

We have entered the last week of our conversation. Let's have a bit of fun!

Which are the professional and personal characteristics, in your opinion, that make a PFM expert apart from the pack of development consultants?

QUESTION 7

More than a question, I want to share the IMF proposal on Reforming the EU Fiscal Framework: Strengthening the Fiscal Rules and Institutions' (https://www.imf.org/en/Publications/Departmental-Papers-Policy-Papers/Issues/2022/08/31/Reforming-the-EU-Fiscal-Framework-Strengthening-the-Fiscal-Rules-and-Institutions-The-EUs-518388 )

QUOTE
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The IMF’s proposal has three interconnected pillars:

Risk-based EU-level fiscal rules: While the current 3 percent deficit and 60 percent debt reference values remain, the speed and ambition of fiscal adjustments would be linked to the degree of fiscal risks. These are identified by debt sustainability analysis using a common methodology, developed by a new and independent European Fiscal Council, or EFC, in consultation with other key stakeholders. Countries with greater fiscal risks would need to converge to a zero or positive overall fiscal balance over the next three to five years. Countries with lower fiscal risks and debt below 60 percent would have more flexibility but still need to consider risks in their plans. The framework would incentivize buildup of fiscal buffers allowing for significant flexibility to respond to adverse shocks and conduct countercyclical policy.

Strengthened national fiscal insti­tutions: All EU countries would have to enact medium-term fiscal frameworks and set multi-year annual spending caps consistent with their overall balance anchor over the period. Independent national fiscal councils would play a stronger role to strengthen checks and balances at the country level, including making or endorsing macroeconomic projections, assessing fiscal risks, and ensuring the consistency of the expenditure ceilings and fiscal plans. The European Commission would continue to play its key surveil­lance role and the EFC would serve as the central node for a network of national fiscal councils, helping to promote good practices and providing an independent voice both on debt risks and the execution of the framework.

A well-designed EU fiscal capacity: This would be established to achieve two key roles: improving macroeconomic stabilization, especially when monetary policy is operating at the effective lower bound, and allowing the provision of common public goods at the EU level, such as climate change and energy security infrastructure. Delivering these has become more urgent due to the green transition and common security concerns. A dedicated climate investment fund is an important part of the proposal.
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UNQUOTE

John, the establishment of Fiscal Councils is not new. Their coordination at EU level is and sounds a wise step towards a slow process of fiscal policy convergence. What is you take on it?

on with QUESTION 6

Thanks a lot, John.

'Getting the sequence right' is often challenged nowadays by 'seizing the moment'. You may remember the PFM platforms (see attachment).
I have seen some countries and some donors 'seizing the moment' and make PFM leaps through stages. Results were, mostly, mixed.