The Euro Area Fiscal Stance

11-09-2019

The concept of “Euro area fiscal stance” is used by the European Commission, the ECB, and the Eurogroup, the IMF and academics, to measure the discretionary fiscal effort at euro area level. It became prominent with the publication of the Commission Communication on “Towards a Positive Fiscal Stance” of November 2016. Since then, it is often mentioned in the Recommendations for the economic policies of the euro area and is the subject of a report by the European Fiscal Board. This note (which is regularly updated) provides an overview of the concept and of the latest developments.

The concept of “Euro area fiscal stance” is used by the European Commission, the ECB, and the Eurogroup, the IMF and academics, to measure the discretionary fiscal effort at euro area level. It became prominent with the publication of the Commission Communication on “Towards a Positive Fiscal Stance” of November 2016. Since then, it is often mentioned in the Recommendations for the economic policies of the euro area and is the subject of a report by the European Fiscal Board. This note (which is regularly updated) provides an overview of the concept and of the latest developments.