Purpose: Respective European Union member states’ interest in using spending reviews varies as there are no international mandatory regulations. The EU legislation contains general indications as to maintaining a rational fscal policy, from the provisions of the TFUE, expanded in the Pact for Stability and Growth, and elaborated in 2011.

Methodology: Adopting an interpretative research approach, this article elaborates a multiple explanatory case study design to discover how existing theories about public spending reviews are conceptualized by practitioners in their natural contexts.

Findings: The deteriorated state of many countries’ public fnances, as a result of the global fnancial crisis, has increased the interest in advanced innovative consolidation and fscal stabilization methods. Spending reviews are among the most developed and advanced methods. Such reviews were conducted both by countries that had applied this instrument before (Netherlands, Denmark, Finland, United Kingdom, Australia), and by those that introduced them for the frst time (Ireland, Canada, France). However, reviews are applied in countries characterized by signifcant economic advancement and mature public management systems.

Originality: This article analyses and draws conclusions from several selected countries’ experience to date in using spending reviews. The budget functions are compared using information from the implementation of the spending reviews. This article contributes to flling two main gaps identifed in the literature review.

Purpose: The goal of the paper is to analyse the determinants of the level of ROE (return on equity) for two groups of banks, interrelated by capital links, and their banking sectors.

Methodology: For the case study, we chose companies that, in 2011–2013, were designated by the Financial Stability Board as global systemically important banks (G-SIBs) and their subsidiaries operating in Central, Eastern and Southeastern Europe (CESEE) as well as their banking sectors. We sought to identify differences in the performance drivers, taking into account bank-specific and country- (or sector-) specific factors.

Findings: We found no significant differences in the level of ROE among the analysed groups; however, we identified a different set of determinants and their impact on ROE.

Purpose: The aim of the paper is to answer the questions (1) whether the reforms of the regulations in the banking sector were effective and (2) which mechanisms discipline the behavior of banks. Moreover, we also raise a question how the behavior of banks depends on the institutional environment.

Methodology: To achieve the objectives, the article uses probit analysis on panel data covering the years: 1995–2006 for the entire period, and for years: 1999–2004 and 2004–2006 for 350 banks from OECD countries.

Findings: The quantitative results clearly argue for banking regulation, rather than leaving the supervision of the banking sector market discipline. However, the survey results also show that the behavior of banks depends largely on the institutional environment. Therefore, we questioned whether the currently proposed regulatory reforms that are homogeneous in nature will be effective in disciplining banks.

Practical implications: Among many reforms that are proposed the most important concerns are ones on banking regulation. Some believe that regulation of the banking sector should not be such useful, others believe that regulations are needed, which showed the fi nancial crisis in 2007–2011.

Purpose: The goal of the text is to show a number of challenges which major central banks must face today. Impressive engagement of the central banks in counter-crisis policy leads to many controversial decisions and its results are not clear both for economic theory and for real economy. For now, one cannot show a full overview of the policy of central banks – on the one hand, thanks to the expansionary monetary policy, recession was quite shallow and the risk in financial markets has declined, but on the other hand, few side effects of this policy can be mentioned, which can jeopardize economic stability in the future.

Methodology: The paper has a theoretical character. The findings are based on a literature review and an analysis of the major macroeconomic data.

Findings: The text indicates the most important areas which have to be investigated by central banks. There are serious doubts about issues like: inflation targeting as a fundamental part of monetary policy, the efficiency of monetary policy instruments and the side effects of loose monetary policy.

Originality: The text presents quite a new approach in analyzing macroeconomic policy by indicating important gaps in contemporary economic knowledge according to which economic policy is conducted.

Purpose: The purpose of the article is to find an answer to the question whether the European Union, and especially the countries that are full members of the Economic and Monetary Union, are able to reach a common solution in fiscal policy, which may result in a further deepening of integration processes.

Methodology: The article is based on literature, legislation and documents, reports and accounts of the institutions and bodies of the EU. The paper presents an analysis of the current situation within the European Union on fiscal consolidation, the theoretical format of the fiscal union and the range of possible functions of common bonds and consequences of the issue (in the context of sharing risk between the issuers, and thus – the impact on
fiscal discipline), and finally, the role of the disintegrative processes in the context of public finance.

Findings: So far, the common legislation to restore budgetary balance was broadly implemented, however, it is too early to say whether specific rules will translate into action of public authorities. When it comes to issues indicating the deepening of integration, it is difficult to note the political consensus in this regard. The proposal for creating a new budget only for the eurozone countries seems to be far-reaching.

Research implications: This paper may be a contribution to the further discussion on the future of the European Union, especially in the context of fiscal policy.

Originality: The author presents her findings and thoughts on current events in the financial integration within the European Union on the basis of documents of the European Commission, the Council of the European Union, the President of the European Council and the European Economic and Social Committee.

Purpose: The main objective of the article is to assess the impact of new regulations introduced in the EU and the euro area in the face of the economic and financial crisis.

Methodology: Literature review related to the functioning of the euro area, roots of the global crisis and financial market integration. The critical literature review was focused on two issues: identification of the causes of fiscal and macroeconomic imbalances in the euro area and assessment of the implemented instruments designed to prevent them.

Findings: The basic feature of the six-pack measures and the European Semester, which complements them, is deeper coordination of macroeconomic, structural and competitiveness policies among Member States. Adopted measures are a big step towards strengthening the economic pillar of the monetary union. However, the progress and quality of their implementation will be critical in improving economic governance in the EU.

Research implications: identification of strengths and weaknesses of the adopted reforms allows for using these results in the assessment of the balance of costs and benefits of the future functioning of the euro area as well as the implications for macroeconomic policies in the countries intending to join the euro area.

Originality: The author tries to provide an overview of the roots of the crisis in the euro area with the assessment of the reforms aiming to prevent similar crises in the future. The arguments presented in the article are against the view that the main reason for the crisis was a weak fiscal policy of the euro area countries.