Euro Area fiscal policies and capacity in post-pandemic times

The Covid-19 pandemic has created huge challenges for policymakers in the whole world. These challenges have to do with both the short run and the long run. In addition, in the euro area, these challenges have dimensions that are peculiar to the fact that the euro area is a monetary union with one monetary authority and nineteen separate budgetary authorities. In this policy brief, the author provides some answer to two questions: • Which policy mix (national/supranational) supports smooth recovery, sustainability of public finances and resilience of the euro area? • Which EMU governance reforms should be prioritised so as to improve the functioning of the euro area?