Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Reforming the Eurozone: Assessment of the Reform Package by the European Commission – Treating Symptoms or Root Causes?
Issue: Vol. 11, No 3, 2018
Published date: 09-2018 (print) / 09-2018 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Bodo Herzog
University of Reutlingen
Keywords: EMU, reform, European Monetary Fund, economic governance
DOI: 10.14254/2071-789X.2018/11-3/4
Index PUBMS: 80dd65a9-cdf4-11e8-92b1-901b0efa6e97
Language: English
Pages: 59-77 (19)
JEL classification: P16, Z13, G38, B53, E52, E62, H42
Website: http://www.economics-sociology.eu/?599,en_reforming-the-eurozone-assessment-of-the-reform-package-by-the-european-commission-%E2%80%93-treating-symptoms-or-root-causes-
Licenses:
Abstract

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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