• The economic case for an expenditure rule in Europe

    2 monthes ago - By Bruegel

    This blog was also published on VOXEU
    Proposals to reform the euro area are on the agenda again (see, in particular, Benassy-Quéré et al. 2018). An overhaul of the complex set of European fiscal rules should be on high on this agenda, because the fiscal framework in place has not worked well.
    The current fiscal framework suffers from massive problems
    It has generated excessive fiscal austerity during the crisis, thereby contributing to aggravating and prolonging its economic, social, and political consequences. Either because countries did not abide by the rules or because the rules were...
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