Euro-area Fiscal Governance: A Guide for the Perplexed at Times of Crisis

Guirola, Luis (2011) Euro-area Fiscal Governance: A Guide for the Perplexed at Times of Crisis. Elcano Newsletter (76). 7 p.. ISSN 1698-5184

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Abstract

Fiscal governance in the Euro-zone is fatally flawed and it would be preferable to have a more integrated framework based on permanent institutions rather than rules. The fiscal governance of the Euro-area is subject to debate and this paper aims to it identify key insights and propose potential solutions. It first describes the theoretical rationale for fiscal discipline, then turns to a brief description of the evolution of the EMU’s fiscal institutional framework and afterwards assesses the debate as well as current reform proposals. The upshot of the analysis is that, as some authors have suggested, fiscal governance based on compulsory and automatic rules is unlikely either to lead to sound fiscal policy or to be enforceable in an intergovernmental setting. Therefore a more integrated framework based on permanent institutions rather than rules is proposed and briefly sketched.

Item Type: Article
Additional Information: Estudio sólo disponible en inglés
Uncontrolled Keywords: Economía y Comercio Internacional
Subjects: INTERNATIONAL COOPERATION > INTERNATIONAL RELATIONS > ECONOMIC INTEGRATION.
INTERNATIONAL COOPERATION > INTERNATIONAL RELATIONS > SINGLE EUROPEAN MARKET.
PUBLIC FINANCE; BANKING; INTERNATIONAL MONETARY RELATIONS > PUBLIC FINANCE; TAXATION > STATE PARTICIPATION.FISCAL POLICY.
PUBLIC FINANCE; BANKING; INTERNATIONAL MONETARY RELATIONS > PUBLIC FINANCE; TAXATION > NATIONAL DEBT.
ECONOMIC POLICY; SOCIAL POLICY; PLANNING > ECONOMIC POLICY; PLANNING > ECONOMIC POLICY.REGIONAL POLICY
ECONOMIC CONDITIONS; ECONOMIC RESEARCH; ECONOMIC SYSTEMS > ECONOMIC CONDITIONS > ECONOMIC CONFLICTS
ECONOMIC CONDITIONS; ECONOMIC RESEARCH; ECONOMIC SYSTEMS > ECONOMIC CONDITIONS > CRISIS
Divisions: Real Instituto Elcano, RIE
Depositing User: Jorge Horcas Pulido
Date Deposited: 15 Apr 2012 02:50
Last Modified: 15 Apr 2012 02:50
URI: http://biblioteca.ribei.org/id/eprint/2162

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