The Never-Ending Quest for the European Fiscal Policy’s Objectives: Stability vs. Convergence or Stability and Convergence?
Carlo Klein
Athens Journal of Business & Economics, 2021, vol. 7, issue 1, 41-66
Abstract:
The aim of this paper is to analyse the permanent struggle to define European fiscal policy objectives, hence to define the corresponding structure of such a policy. To discuss the objectives of fiscal policies in the European context our starting point will be the idea that politics has to define clear objectives, then economic policies, fiscal policies included, should be designed to attain the fixed objectives. In the European context, the Economic and Monetary Union (EMU)’s main objectives have been restated in 2015: “balanced economic growth and price stability, a competitive social market economy, aiming at full employment and social progress†for all member states. Our conclusion, based on these objectives, will be that the EMU needs a fiscal policy as well to cope with asymmetric shocks as to foster real convergence among member states. Therefore, a clearer presentation of the corresponding policies with the expected outcomes on the member state level has to be added. This has to be achieved through an improved communication policy to convince European citizens that the European integration is not just about maintaining peace in Europe but that a real improvement in living conditions can be achieved. (JEL E61, E62, F15, F55)
Keywords: Economic and Monetary Union; Optimum Currency Area; Real Convergence of European Economies; Common Fiscal Policy; Interventionist Supply Side Policies (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
https://www.athensjournals.gr/business/2021-7-1-2-Klein.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ate:journl:ajbev7i1-2
DOI: 10.30958/ajbe.7-7-2
Access Statistics for this article
More articles in Athens Journal of Business & Economics from Athens Institute for Education and Research (ATINER)
Bibliographic data for series maintained by Afrodete Papanikou (info@atiner.gr).