Author/s: Diego Aboal y Fiorella Pizzolon.
CINVE, Uruguay Red Mercosur
In the current favorable macroeconomic context the fiscal stance of MERCOSUR countries is no longer under strain. A series of research projects undertaken by MercoNet for Argentina, Brazil and Uruguay has concluded that fiscal sustainability has broadened pro-growth fiscal space.
However, despite some progress towards the implementation of national counter-cyclical fiscal policies, this has not led to region-wide pro-growth fiscal policies.