REFORMING THE EUROZONE: ASSESSMENT OF THE REFORM PACKAGE BY THE EUROPEAN COMMISSION - TREATING SYMPTOMS OR ROOT CAUSES?

10.14254/2071-789X.2018/11-3/4

Bodo Herzog

EMU ； reform ； European Monetary Fund ； economic governance

Economics & Sociology

11卷3期（2018 / 09 / 01）

59 - 77

英文

The paper studies the reform package proposed by the European Commission on 6 December 2017. First, institutional and economic implications of the reform proposal are analysed. The paper finds that some proposals are beyond the present Treaty provisions. For instance, the proposal of a fiscal capacity does not tackle the economic root causes without a supranational transfer mechanism. In fact, the proposed budget neutrality over the medium-term is unfeasible due to cross-country heterogeneity in the Eurozone. At the end, the paper develops policy conclusions.