The concept of quality of public finances is promoted by the European Commission through the Stability and
Growth Pact, revised in 2005. According to this pact, transparency and predictability of fiscal policy are the main
guidelines in the foundation of national fiscal strategies, as knowing the quality and stability of a country's
macroeconomic environment is essential for business area. In defining this concept, the European Commission
discusses a key element of the quality of public finances, that is represented by fiscal governance.