POLITICAL ANALYSIS: The Eurozone as a fiscal union - a long-needed scenario? Cover Image

POLITIČKA ANALIZA: Eurozona kao fiskalna unija – odavno potreban scenarij?
POLITICAL ANALYSIS: The Eurozone as a fiscal union - a long-needed scenario?

Author(s): Iain Begg
Subject(s): Supranational / Global Economy, Financial Markets
Published by: Vanjskopolitička inicijativa BH
Summary/Abstract: "There is nothing to do with the transfer union!" - this has long been Germany's firm stance on the issue of the euro. But the fiscal union is being talked about more and more, not only as the most credible way out of the national debt crisis that is pressing the eurozone, but also as an inevitable and logical consequence of the monetary union. According to this reason, the fiscal union would make it much easier to reap the promised fruits of the common currency, and the gains would easily exceed all costs. Today, it cannot be denied that fiscal (or political) union is a scenario for the development of the Eurozone that must be taken seriously. The seemingly insurmountable obstacles in the way may be serious enough to make progress nearly impossible.1 However, given how many golden calves have been slaughtered since the fall of 2009, it may only take one or two more crises for the debate shifts from the question of whether a fiscal union will be established to the question of how it will be done. The aim of this essay is to present the arguments in favor of a tighter fiscal union as a welcome, rather than ominous, solution to the problems that have plagued the common currency in the last two years. The essay attempts to construct a plausible scenario that describes what such a fiscal union could look like, considering the arguments for and against and possible costs and benefits.

  • Page Count: 14
  • Publication Year: 2011
  • Language: Bosnian
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