Harmonizing public sector accounting in Europe: thinking out of the box

A broad debate about the harmonization of public sector accounting standards in Europe is underway. We provide arguments in favour of harmonization but we also acknowledge the existing pluralism and diversity by taking stock of the state of the art in fourteen European countries. Our proposal, a stimulus for reflection for policymakers and standard setters, suggests that the benefits of harmonization can be obtained without obliging EU member countries to necessarily abandon their current public sector accounting systems.