In order to preserve financial integration and stability, the Eurozone needs to build elements of a common fiscal policy. This column discusses how this could be done. It proposes the creation of a European Fiscal Institute, modelled on principles similar to those used for the ECB. Such an establishment would require treaty and constitutional reforms in member states, which would not be politically feasible in the short term.
Building common fiscal policy in the Eurozone
Tabellini, Guido
2016
Abstract
In order to preserve financial integration and stability, the Eurozone needs to build elements of a common fiscal policy. This column discusses how this could be done. It proposes the creation of a European Fiscal Institute, modelled on principles similar to those used for the ECB. Such an establishment would require treaty and constitutional reforms in member states, which would not be politically feasible in the short term.
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