|Title:||Reforming the Eurozone: Assessment of the Reform Package by the European Commission – Treating Symptoms or Root Causes?|
Vol. 11, No 3, 2018
Published date: 09-2018 (print) / 09-2018 (online)
Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
University of Reutlingen
|Keywords:||EMU, reform, European Monetary Fund, economic governance|
|JEL classification:||P16, Z13, G38, B53, E52, E62, H42|
The paper studies the reform package proposed by the European Commission on 6 December 2017. First, institutional and economic implications of the reform proposal are analysed. The paper finds that some proposals are beyond the present Treaty provisions. For instance, the proposal of a fiscal capacity does not tackle the economic root causes without a supranational transfer mechanism. In fact, the proposed budget neutrality over the medium-term is unfeasible due to cross-country heterogeneity in the Eurozone. At the end, the paper develops policy conclusions.
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