A pragmatic budgetary instrument for the Euro Area
Jacques Delors Institute Berlin; Bertelsmann Stiftung (ed.)
Ole Funke, Lucas Guttenberg, Johannes Hemker, Sander Tordoir
Finding Common Ground
- Format Type
- Date of publication
- 08/02/2019
- Volume/Format
- 14 pages, PDF
Format
-
PDF
Price
Free of charge
Description
By June, the Eurogroup has to come up with a concrete design for budgetary instrument for the euro area - but so far it is absolutely unclear what it should look like. Our policy paper fills this void and makes a concrete and pragmatic proposal that would make the Eurozone function better: The instrument would be geared towards improving business cycle convergence and producitivity. The instrument's expenditure would go to supporting investment and reforms and to temporarily help countries co-finance EU projects. It would be funded by cyclically-sensitive contributions by Member States akin to a synthetic European corporate tax.