Does the european union need a fiscal union? Cover Image

Czy unia europejska potrzebuje unii fiskalnej?
Does the european union need a fiscal union?

Author(s): Joanna Działo
Subject(s): Economy
Published by: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
Keywords: monetary policy; optimal currency area; coordination of fiscal policy; fiscal union; policy mix

Summary/Abstract: One of the most negative effects of the economic crisis is a long-run recession and the rapid deterioration of public finances in many countries due to the need to use fiscal policy to support the economies at risk of recession. EU budget problems (particularly in the euro zone) are partly due to the lack of a common fiscal policy. This raises the need for coordination of fiscal policy at the EU level (the so-called fiscal union). The introduction of a fiscal union, in turn, raises concerns that the reduction of deficits and debts will stifle economic growth and deepen the recession. The problem is the lack of coordination between the single monetary policy and differentiated fiscal policy, making it difficult to effectively conduct the economic policy in the euro zone.

  • Issue Year: 2013
  • Issue No: 306
  • Page Range: 86-97
  • Page Count: 12
  • Language: Polish