Economic and monetary union and the euro provide the common foundations for greater stability, growth and prosperity across Europe. This factsheet is part of the publication ‘The European Union: What it is and what it does’....
The literature on fiscal multipliers finds that spending-based fiscal consolidations tend to have more benign macro-economic consequences than revenue-based consolidations. By directly comparing ex-post data with consolidation plans, we present evidence of a systematically weaker follow-up of sp...