FISCAL FEDERALISM AND FISCAL DECENTRALIZATION IN AN ENLARGED EUROPEAN UNION

Fiscal competition and tax harmonisation are two of the main current issues in the enlarged European Union. Achieving these goals and thus improving the EU economic governance is partially dependent by the way we understand and practice the so-called fiscal federalism and fiscal decentralization at the national and European level. Our paper aims to emphasize the similitude and differences between fiscal federalism and fiscal decentralization and revealing the way in which the functioning of the European Union is affected by them.