Research Handbook on EU Economic Law
Show Less

Research Handbook on EU Economic Law

Edited by Federico Fabbrini and Marco Ventoruzzo

This comprehensive Research Handbook analyses and explains the EU’s complex system of economic governance from a legal point of view and looks ahead to the challenges it faces and how these can be resolved. Bringing together contributions from leading academics and top lawyers from EU institutions, this Research Handbook is the first to cover all aspects of the Eurozone’s legal ecosystem, and offers an up-to-date and in depth assessment of the norms and procedures that underpin the EU’s economic, monetary, banking, and capital markets unions.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 5: Fiscal capacity

Federico Fabbrini

Abstract

The chapter analyses the proposals in favour of establishing a fiscal capacity – that is a budget of the euro area that can be used as a counter-cyclical tool for stabilization purposes in cases of asymmetric shocks. As the chapter explains, the fiscal capacity remains a missing link in the constitutional structure of EMU: the Maastricht Treaty did not foresee any supranational mechanism to handle asymmetric busts, and the responses to the crisis so far have not led to the creation of such an instrument. Yet, the author underlines that growing awareness exists on the need for such a fiscal capacity and he reviews the proposals advanced, among others, by the European Parliament, the European Commission and jointly by the French and German Governments for a euro area budget, suggesting that a consensus may be building in this direction. In fact, Fabbrini claims that there are adequate legal bases in the current EU treaties to set up such a stabilization tool, but he emphasizes that a successful fiscal capacity must be based on own resources – rather than state transfers – and subject to adequate governance and accountability mechanisms to ensure executive effectiveness and democratic legitimacy.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.