Euro-Area Fiscal Stance: Definition, Implementation and Democratic Legitimacy

13-09-2016

This paper discusses the concept of Euro Area Fiscal Stance (EAFS), the current state of the EAFS and the instruments available to manage it. It closes with a proposal on how the management of the EAFS could be improved. The proposal comes in two parts. First, I discuss how the management of the EAFS could be improved within the boundaries of the Treaties. Next, I discuss a more ambitious plan, which might require a Treaty change.

This paper discusses the concept of Euro Area Fiscal Stance (EAFS), the current state of the EAFS and the instruments available to manage it. It closes with a proposal on how the management of the EAFS could be improved. The proposal comes in two parts. First, I discuss how the management of the EAFS could be improved within the boundaries of the Treaties. Next, I discuss a more ambitious plan, which might require a Treaty change.