Global Economic Crisis: New Tools of regulating Financial and Budget Relations

Abstract

Krylova Ninel’ - Leading Research Fellow, Institute of State and Law, Russian Academy of Sciences, Doctor of Juridical Sciences. Address: 10 Znamenka Str., Moscow, 119991, Russian Federation. E-mail: ninelkrylova@mail.ru.

A financial crisis is an important factor promoting to the development of common principles and rules of implementing financial and economic functions of state. All the crises experienced by mankind have had a lasting influence. One of the characteristic features of the 2008–2009 financial crisis is the environment of globalization. This promoted to the processes of harmonization and standardization to regulate financial relations. The crisis revealed a trend to a strengthened interaction and cooperation of states to overcome the crisis or weaken its consequences. The cooperation was being performed at regional or international levels. The mechanisms and standards arisen after the crisis were not curbed after the crisis and the beginning of the rehabilitation period. The author studies the EU practice in the area of new standards and mechanisms and financial stabilization, the provisions of the new fiscal pact. The paper mentions the establishment of the European Stability Mechanism, a strengthened role of the ECB, covers EU activity in the area tackling tax evasion and offshores. A question is being discussed on establishing the mechanism of automatic exchange of information (FATCA). The crisis has revealed the trend to strengthening the role of constitutional law mechanisms to solve financial and economic issues. The article says about a higher role of representative bodies to solve budget issues, the increased role of judicial institutions etc. As a result, the author arrives at a conclusion that during the global crisis a certain improvement has appeared as to the interaction of supranational and national standards and mechanisms of financial regulation. The breach of legal recommendations providing mandatory rules and principles of decision-making in budget and financial issues may bring serious economic and fi- nancial aftereffects. These things bear lessons and long-term consequences of the 2008–2009 global economic crisis.