Which budgetary union for the E(M)U?

Abstract:

This article considers whether the creation of a budgetary union in the European EMU (economic and monetary union) is a feasible and suitable way to resolve the current impasse created by the euro crisis.

The article begins by identifying the major drawbacks concerning the transposition of prescriptions regarding fiscal federalism to the current E(M)U scenario, with the outlook that this appears to be an extemporaneous solution.
It then indicates the alternative conception of an incomplete budgetary union, which is mostly characterized by the setting up of specific insurance mechanisms. These alternative measures are shown to be more realistic and feasible, since they combine path dependency with an innovative appropriation of specific features of the classic federalism model, modifying them to an E(M)U scenario in a heterodox way.

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