|Author (Person)||Whelan, Karl|
|Author (Corporate)||European Parliament: DG Internal Policies|
|Publisher||European Parliament: European Parliamentary Research Service (EPRS), European Union|
|Series Title||EPRS In-Depth Analysis|
|Series Details||PE 658.195|
|Publication Date||November 2020|
|Content Type||Research Paper|
The global pandemic is deepening the linkages between fiscal and monetary policies. While some are concerned that high public debt may pressurise the ECB to pursue overly loose monetary policy, this paper argues there is a greater risk that the Treaty’s rules on monetary financing will constrain the ECB from reacting appropriately to the crisis and that re-imposing the EU’s fiscal rules from 2022 onwards could harm economic recovery. This paper calls for an overhaul of the economic rules in the Treaty.
This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 19 November 2020. The analysis is part of the series Monetary Dialogue Papers.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Fiscal Policy, Monetary Affairs|
|International Organisations||European Union [EU]|