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The Appreciating Role of Public Sector in Central and Eastern Europe in a Turbulent Era

Kovács, O. (2012): The Appreciating Role of Public Sector in Central and Eastern Europe in a Turbulent Era. News of the Month, ICEG European Center, May-June 2012 pp. 4-12.

The paper argues that our world has become ever-more complex to be overlooked and managed in a scientifically appropriate manner. We point out that complex system, like modern financial system, requires complex solutions but they are beset with difficulties. In time of turbulence, when European core and peripheral countries are also suffering from the negative repercussions of the sovereign debt crisis, when the trust in the future of the eurozone has started to show some kind of evaporation, when series of painful measures are required to cope at least with fiscal challenges, the role of the state has been heavily appreciating. The European public sector (including that of the CEE and Baltis States) has a great potential to demonstrate its ability to mitigate and eliminate the danger of fiscal unsustainability through fiscal consolidations, structural reforms as well as more innovation activity within the public sector to have ‘more for less’, i.e. increased or at least the same service quality of public service provision with improved accessibility. In this way the public sector may act as a trust-builder who is to strengthen the confidence level of citizens which is inevitable in time when painful measures are needed.

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