This paper studies fiscal policy behavior with regard to sustainability for the

group of the eight eastern new member states (NMS) which joined the European

Union (EU) in 2004. Using the approach of Bohn (1995, 1998) the fiscal reaction

function is estimated for the years 1995 until 2013. Further, by separating the response

in periods before and after accession, it is possible to study potential changes

in fiscal sustainability. The results of the panel regressions reveal a positive statistically

significant reaction coefficient, indicating sustainable behavior. Moreover, the

separated responses before and after 2004 signify a stronger reaction ahead of the

accession. Plus, effects of the crisis should be taken into account.