This paper analyses three questions related to the EU/EMU integration infrastructure: (i) interrelation between monetary and fiscal integration; (ii) interrelation between monetary integration and closer coordination of macroeconomic policies and (iii) fiscal discipline vs. fiscal solidarity. On...
This paper reviews the macroeconomic use of national fiscal policy in EMU and examines the rational and scope for a collective insurance system which redistributes income among countries in response to asymmetric cyclical shocks. The analysis of the record of national fiscal policies before and ...
The European Commission has exercised discretionary powers granted by the preventive arm regulation very extensively with a view to reduce the adjustment requirements, both by setting the implementation rules and in individual decisions. We consider that the combination of the current matrix par...
This paper is linked to two debates on fiscal policies: first, the implications of low interest- growth differentials for debt sustainability and, second, the reform of the EU fiscal governance framework. In both debates the choice of government debt anchor and the speed of adjustment take centr...
Past reforms of the Stability and Growth Pact (SGP) have improved its economic rationale, but this progress has come at the expense of simplicity, transparency and, possibly, enforceability. This study surveys and evaluates reform models that could reduce complexity without compromising the SGP’...
Most of the country-specific recommendations (CSRs) issued over the years 2011-13 concentrated on the need to reduce budget deficits “in a growth-friendly way” and to increase competitiveness. Both policy goals remain appropriate today. However, the CSRs have seldom indicated what concrete polic...
The Stability and Growth Pact (SGP) adopted in 1997 originally set budget balance as the medium-term objective (MTO) for all EU Member States, to create a safety margin under the 3% of GDP deficit ceiling. In a reform in 2005, MTOs were made country-specific and dependent on initial debt and the...
The establishment of an additional EMU fiscal capacity is one of the core ideas for the further development of the EMU towards a genuine economic and monetary Union. This note indicates the legal options for the implementation of an additional EMU fiscal capacity. This covers implications of EU ...
In response to the financial and economic crisis, the European Union introduced a series of changes to its institutional architecture for economic and social governance, with the aim of achieving more integrated fiscal and economic coordination. At the heart of this new architecture is the 'Euro...
Several member countries of the Eurozone are plagued by increasing government debt and weak economic growth, raising concerns about fiscal sustainability. This paper discusses policy options to improve fiscal sustainability, focusing on two proposals: more public investment and growth oriented t...
