The crisis of economic governance in the European Union

Ernesto Longobardi ()

No 07-2015, SERIES from Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro"

Abstract: This paper deals with the origin and the evolution of the European system of fiscal rules and discusses the perspectives for future developments. The early debate about the design of establishing a monetary union in a not optimal currency area, with decentralized fiscal policies, is reconsidered. The main developments of the European rulesDbased fiscal governance are discussed, starting with the Maastricht Treaty and going through the institution and the evolution of the Stability and Growth Pact (SGP). After drawing a brief outline of the system of fiscal rules in force at present, the key issue of the estimation of potential output is considered. The shortcomings of the estimation practices are, to a large extent, responsible for the inadequate results produced by the shift from nominal to structural targets, which was the main aim of the SGP reforms. The paper concludes sketching the debate on the reform of the European economic governance.

Keywords: Fiscal Rules; Fiscal policy; European Monetary Union (search for similar items in EconPapers)
JEL-codes: E62 H60 H77 (search for similar items in EconPapers)
Pages: 277
Date: 2015-10, Revised 2015-10
New Economics Papers: this item is included in nep-mac
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.seriesworkingpapers.it/RePEc/bai/series/SERIES_WP_07-2015.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:bai:series:series_wp_07-2015

Access Statistics for this paper

More papers in SERIES from Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro" Largo Abbazia S. Scolastica, 53 - 70124 - Bari - ITALY. Contact information at EDIRC.
Bibliographic data for series maintained by Annalisa Vinella ().