Fiscal Policies: Stronger Coordination and Higher EU Budget
There are at least three reasons why fiscal policies must be considerably strengthened at the EU level. Firstly, the current internal state of persistent macroeconomic weakness and increasing social polarization can only be overcome through strong political intervention. Secondly, the close interlinkages between member states have the dual effect of making isolated actions by individual member countries increasingly ineffective and of reinforcing the effectiveness of joint action. Thirdly, such joint action is also required to strengthen the external position of the EU in the world and helps to shape the profile of the EU as an attractive alternative to the US development model.
KeywordsFiscal Policy Public Debt Strong Coordination Asymmetric Shock Monetary Policy Committee
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