Working Papers Collection: Franco Praussello, From the Eurozone to the fiscal and political union, AUSE, 1/2017
Segnaliamo la pubblicazione nella collana Working Papers dell’AUSE del saggio del Prof. Franco Praussello "From the Eurozone to the fiscal and political union".
The paper focuses on the search of viable fiscal mechanisms for fixing the euro area predicament, beyond the partial governance reforms already decided by the Eurogroup governments. After a critical survey of different forms of fiscal union, from the standard instrument of supranational risk sharing in the tradition of the OCA theory and fiscal federalism, to the variants of stability and transfer union, European unemployment insurance schemes are identified as a viable target for continuing progress towards an ever closer continental integration. In view of the fact that they are based on devices working to the benefit of eurozone creditor countries too, if necessary, they could overcome the German idiosyncrasy against any form of what they call “transfer unions”. Their political acceptability could be thus enhanced also in the face of a general public opinion that considering initially the euro as a paradise discovered that the single currency can become also a threatening hell. All that, if only in the new favourable mood for European integration due to results of several European elections in 2017 possible fresh political reforms could include new powers for the European Parliament to democratically control future forms of European risk sharing.
Link: Collana Working Papers