Analysis and Comparison of the Fiscal Sustainability of Germany, Norway, and the Netherlands

Bc. Joseph Bassit

Master's thesis

Abstract:

This thesis examines the fiscal sustainability of public finances in selected European countries—Germany, the Czech Republic, the Netherlands, Italy, and Norway—within the context of the Russia-Ukraine conflict, volatile natural gas prices, and shifting demographics. These nations face distinct fiscal challenges, shaped by their roles in the global energy market, their reliance on imported energy, and demographic pressures such as ageing populations and migration flows. The research focuses on the fiscal responses of these countries to recent economic shocks, including measures such as energy subsidies, structural reforms, and adjustments to public spending and taxation. Using econometric models, the study evaluates the impact of energy price fluctuations on government expenditures. It explores how fiscal adjustments influence deficit-to-GDP ratios, providing insights into the sustainability of public finances under economic stress. Demographic changes, such as the ageing population and the overflow of refugees resulting from the conflict, are also analyzed for their long-term implications on fiscal policies and economic stability. Special attention is given to the selected countries coordinated fiscal responses and their strategic efforts to reduce dependency on Russian gas, assessing how these shifts affect national budgets and fiscal sustainability. Through a comparative analysis of the selected countries, the thesis underscores the complex interplay between fiscal policy, external economic shocks, and structural challenges. The findings provide evidence-based policy recommendations to strengthen fiscal sustainability while addressing immediate economic needs and long-term fiscal risks. This research contributes to a deeper understanding of public finance management during geopolitical uncertainty and economic transformation.

Keywords

Fiscal Sustainability, Budget Balance, Public Finances, Energy Sources, Demography.

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 3. 12. 2024

Obhajoba závěrečné práce

• Obhajoba proběhla 4. 2. 2025
• Vedúci: doc. Ing. Irena Benešová, Ph.D.
• Oponent: Monika Hrstková, externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme:
Economics and Management