The sovereign debt crisis in the euro area is a
symptom of policy failures and defi ciencies in –
among other things – fi scal policy coordination.
The first nine years of the euro were not used
effectively in order to improve public finances,
while the Stability and Growth Pact was
watered down. Spillovers from the financial and
economic crisis compounded fiscal difficulties
in the euro area, especially in certain member
countries. This paper looks back at the history
of fiscal policies and rules in Economic and
Monetary Union (EMU). It makes proposals
to strengthen fiscal policy governance that go
well beyond the legislation set to be adopted
in autumn 2011. The authors consider these
additional governance measures to be essential
for effective policy coordination and sound
public finances in the future.
Hier gibt's das vollständige Paper.
