Euro-Area Fiscal Stance: Definition, Implementation and Democratic Legitimacy

Please note: Each In-Depth Analysis is assigned a DOI (digital object identifier), which is a safe and long term way of ensuring a hyperlink to the full text of this report. However, when ESO creates this record, on occasion the DOI still has not been activated by the EU Bookshop. If you find the source url hyperlink does not work please use the alternative location hyperlink listed as a related url.This paper discusses the concept of Euro Area Fiscal Stance (EAFS), the current state of the EAFS and the instruments available to manage it. It closes with a proposal on how the management of the EAFS could be improved.

The proposal comes in two parts. First, the author discusses how the management of the EAFS could be improved within the boundaries of the Treaties. Next, the author discussesI a more ambitious plan, which might require a Treaty change.

Author: Francesco Giavazzi

• Primary Source

European Parliament: Directorate-General for Internal Policies of the Union: Publications available via the EU Bookshop http://bookshop.europa.eu/en/directorate-general-for-internal-policies-of-the-union-cbf.cKABstF7wAAAEjwYYY4e5K/

European Parliament: European Parliamentary Research Service: In-Depth Analysis, September 2016: Euro-Area Fiscal Stance: Definition, Implementation and Democratic Legitimacy http://www.europarl.europa.eu/RegData/etudes/IDAN/2016/574426/IPOL_IDA(2016)574426_EN.pdf

ECB: Economic Bulletin, No.4, 2016: The euro area fiscal stance https://www.ecb.europa.eu/pub/pdf/other/eb201604_article02.en.pdf

EPRS: Briefing, January 2017: The Euro Area Fiscal Stance http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/587374/IPOL_BRI(2016)587374_EN.pdf

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