Legal Options for an Additional EMU Fiscal Capacity

15-01-2013

The establishment of an additional EMU fiscal capacity is one of the core ideas for the further development of the EMU towards a genuine economic and monetary Union. This note indicates the legal options for the implementation of an additional EMU fiscal capacity. This covers implications of EU budget law, the legal implications of the idea of “contractual arrangements” and institutional implications of possible further developments of the additional fiscal capacity into a euro area stabilisation instrument.

The establishment of an additional EMU fiscal capacity is one of the core ideas for the further development of the EMU towards a genuine economic and monetary Union. This note indicates the legal options for the implementation of an additional EMU fiscal capacity. This covers implications of EU budget law, the legal implications of the idea of “contractual arrangements” and institutional implications of possible further developments of the additional fiscal capacity into a euro area stabilisation instrument.