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Assessing the EU’s fiscal architecture: a presentation by the European Fiscal Board

Economic, Financial, and Banking Affairs
Date: Monday, 02 July 2018 12:00

Venue: BRUEGEL  |  City: Saint-Josse-ten-Noode

On Monday 18 Junethe EUROPEAN FISCAL BOARD published its latest report. The report provides an assessment of the macroeconomic situation and outlook in the euro area and offers independent advice on the general orientation of fiscal policy in the single currency area. It also includes a discussion on how to improve the fiscal architecture of the Economic and Monetary Union.

The report concludes that the current economic outlook offers an opportunity to rebuild fiscal buffers. It argues that lest we repeat the mistakes of the past and rob ourselves of room to manoeuvre when the next crisis hits, this is the time to move towards a somewhat restrictive orientation of fiscal policy in the euro area.

The report also suggests that the economic and political feasibility of a meaningful joint stabilisation function will crucially hinge on whether, in parallel, progress is made with risk reduction, notably by making the EU fiscal rules simpler and stronger.

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  • Monday, 02 July 2018 12:00

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