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Full Employment Models (Western Europe)

Volume 940: debated on Monday 28 November 1977

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asked the Chancellor of the Exchequer how many Western European countries use full employment models to assist in the making of budget decisions.

I understand that the Danish Government have used a full employment budget balance on an experimental basis. Otherwise I know that the Netherlands Government use a related concept—the structural budget margin—in their annual Budget Memorandum. In West Germany a further related concept —the cyclically neutral budget—is used by the Council of Economic Experts, but not by the Federal Government. I am not aware of other Western European countries which use full employment budget models.