Redemption?

Catherine Mathieu () and Henri Sterdyniak ()

Working Papers from HAL

Abstract: The economic crisis which started in 2008 led to a strong rise in public debts. The sovereign debt crisis in euro area southern countries breached the unity of the euro area and weakened the 'single currency' concept. The paper shows that this situation is not due to a lack of fiscal discipline in Europe, but to drifts in financial capitalism and to an inappropriately designed euro area economic policy framework.Public debts homogeneity needs to be resettled in Europe. European public debts should become safe assets again, and should not be subject to financial markets' assessment. European Member Statesshould not be requested to pay for past sins through austerity measures, and should not strengthen fiscal discipline through rules lacking economic rationale. The paper deals with recent proposals which have been made to improve euro area governance (redemption fund, Eurobonds, public debt guarantee by the ECB). The paper advocates for a full guarantee of government bonds for the Member States who commit to an economic policy coordination process, which should target GDP growth and coordinated reduction of imbalances.

Keywords: EU fiscal policy; EU governance (search for similar items in EconPapers)
Date: 2013-05
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-00973036
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://sciencespo.hal.science/hal-00973036/document (application/pdf)

Related works:
Journal Article: Redemption? (2014)
Working Paper: Redemption ? (2014)
Working Paper: Redemption ? (2014)
Working Paper: Redemption (2013)
Working Paper: Redemption? (2013)
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:hal:wpaper:hal-00973036

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().