UCL Discovery
UCL home » Library Services » Electronic resources » UCL Discovery

Bargaining the Euro: Making an EU Fiscal Union Politically Acceptable

Figueira, F; Espinoza, R; (2023) Bargaining the Euro: Making an EU Fiscal Union Politically Acceptable. European Review , 31 (3) pp. 252-272. 10.1017/S1062798723000030. Green open access

[thumbnail of Figueira_div-class-title-bargaining-the-euro-making-an-eu-fiscal-union-politically-acceptable-div.pdf]
Preview
Text
Figueira_div-class-title-bargaining-the-euro-making-an-eu-fiscal-union-politically-acceptable-div.pdf

Download (484kB) | Preview

Abstract

An EU Fiscal Union is being discussed as a way to avoid future euro-crises and guarantee the stability of the euro. So far, however, it has proved politically impossible, as EU countries are unwilling to give up their sovereignty on fiscal policy. This article develops a bargaining model that sheds light on how fiscal pooling could become politically acceptable. The model differentiates between the ‘South’ (net beneficiaries) and the ‘North’ (net payers). We find that fiscal pooling should be done via a combination of the fiscal instruments with the highest fiscal multipliers. Instead of a single Fiscal Union, we therefore propose a combination of fiscal pooling instruments which, together, add up to the sufficient level of fiscal integration.

Type: Article
Title: Bargaining the Euro: Making an EU Fiscal Union Politically Acceptable
Open access status: An open access version is available from UCL Discovery
DOI: 10.1017/S1062798723000030
Publisher version: https://doi.org/10.1017/S1062798723000030
Language: English
Additional information: Copyright © The Author(s), 2023. Published by Cambridge University Press on behalf of Academia Europaea. This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > SSEES
URI: https://discovery.ucl.ac.uk/id/eprint/10123708
Downloads since deposit
0Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item