Hostname: page-component-cd9895bd7-gvvz8 Total loading time: 0 Render date: 2024-12-23T03:31:57.105Z Has data issue: false hasContentIssue false
  • English
  • Français

Fiscal Union, Monetary Policy Normalization and Populism in the Eurozone

Published online by Cambridge University Press:  27 January 2020

Alfredo Arahuetes García  and
Gonzalo Gómez Bengoechea
Alfredo Arahuetes García
Affiliation:
Universidad Pontificia Comillas. Alberto Aguilera 23, 20115Madrid, Spain; Emails: [email protected], [email protected]
Gonzalo Gómez Bengoechea
Affiliation:
Universidad Pontificia Comillas. Alberto Aguilera 23, 20115Madrid, Spain; Emails: [email protected], [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

This article studies the different scenarios for the fiscal union in the Eurozone beyond 2019. It explains the different alternatives that the literature has explored to ensure fiscal transfers within Eurozone states as well as for common debt issuance. It also describes the role that monetary policy has played as a backstop for sovereign defaults and highlights the limits that inflation and an anti-euro backlash impose on public debt sustainability.

Type
Articles
Information
European Review , Volume 28 , Issue 2 , April 2020 , pp. 238 - 257
Copyright
© Academia Europaea 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Altavilla, C, Pagano, M and Simonelli, S (2015) Bank exposures and sovereign stress transmission. CSEF Working Papers 410, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.CrossRefGoogle Scholar
Brunnermeier, MK, Garicano, L, Lane, PR, Pagano, M, Reis, R, Santos, T, Thesmar, D, Nieuwerburgh, SV and Vayanos, D (2016) The sovereign-bank diabolic loop and ESBies. CEP Discussion Papers dp1414, Centre for Economic Performance, LSE.CrossRefGoogle Scholar
Céline, A, Brooks, PK, Bluedorn, JC, Bornhorst, F, Ohnsorge, FL and Christopherson, P (2013) Toward a fiscal union for the euro area. IMF Staff Discussion Notes 13/9. International Monetary Fund.CrossRefGoogle Scholar
Cottarelli, C (2013) European fiscal union: a vision for the long run. Swiss Journal of Economics and Statistics (SJES) 149, 167–174.CrossRefGoogle Scholar
De Grauwe, P and Moesen, W (2009) Common euro bonds: necessary, wise or to be avoided? Intereconomics 44(3), 132–141.Google Scholar
De la Dehesa, G (2011) Eurobonds – concepts and implications. European Commission Briefing Note IP/A/ECON/NT/2011-01.Google Scholar
Di Mauro, B (2011) A European redemption pact. Voxeu. Original publication date: 9 November 2011. Available at: https://voxeu.org/article/european-redemption-pact.Google Scholar
ECB (2018) Press conference by Mario Draghi and Luis de Guindos. October 2018. European Central Bank. Original publication date: 25 October 2018. Available at: https://www.ecb.europa.eu/press/pressconf/2018/html/ecb.is181025.en.html.Google Scholar
ECB (2019) Press conference by Mario Draghi and Luis de Guindos. July 2019. European Central Bank. Original publication date: 25 July 2019. Available at: https://www.ecb.europa.eu/press/pressconf/2019/html/ecb.is190725~547f29c369.en.html.Google Scholar
Enderlein, H, Bofinger, P, Piris, JC, de Grauwe, P, Rodrigues, MJ, Pisani-Ferry, J, Sapir, A and Vitorino, A (2012) Completing the euro: a roadmap towards fiscal union in Europe. Report of the ‘Tommaso Padoa-Schioppa Group’.Google Scholar
Gros, D and Micossi, S (2008) A call for a European Financial Stability Fund. CEPS Commentary. October 2008. Available at: https://www.ceps.eu/ceps-publications/call-european-financial-stability-fund/.Google Scholar
Juncker, JC and Tremonti, G (2010) E-bonds would end the crisis. Financial Times, 5 December 2010. Available at: http://www.astrid-online.it/static/upload/protected/Junc/Juncker-Tremonti.pdfGoogle Scholar
Mundell, R (1961) A theory of optimal currency areas. American Economic Review 51, 657–665.Google Scholar
Philippon, T and Hellwig, C (2011) Eurobills, not Eurobonds. Voxeu. Original publication date: 2 December 2011. Available at: https://voxeu.org/article/eurobills-not-euro-bonds.Google Scholar
Weizsäcker, JV and Delpla, J (2011) Eurobonds: the blue bond concept and its implications. European Commission, IP/A/ECON/FWC/2009-040/C1. Original publication date: March 2011. Available at: http://www.europarl.europa.eu/document/activities/cont/201103/20110321ATT15948/20110321ATT15948EN.pdf.Google Scholar