Martens Centre
  • Home
  • About
    • Who we are
    • Team
    • Bodies and Experts
    • Members
  • Publications
  • Events
  • News
  • Blog
  • Contact
back

Publications

  • Home
  • About
    • Who we are
    • Team
    • Bodies and Experts
    • Members
  • Publications
  • Events
  • News
  • Blog
  • Contact
Share on whatsapp
Whatsapp
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
Linkedin
Share on print
Print
Share on email
Email

Rebalancing the Euro Area: A proposal for Future Reform

19 December 2018

Under a monetary union, fiscal and monetary discipline have to go hand in hand if macroeconomic stability is to be maintained. The question is how to set up the right institutions to achieve this stability in a credible manner. This policy brief proposes a new institutional arrangement for the euro area to restore fiscal discipline. It places the responsibility for compliance entirely on the shoulders of the member states. It also provides for the mutualisation of 30% of the member states’ debt-to-GDP ratio.

This would help to maintain a stable currency and to limit the risk of contagion should another crisis occur in the future. However, this comes at a cost. Under the fiscal scheme proposed, member states, which would be fully fiscally sovereign, would need to run long-term sound fiscal policies to benefit from euro membership.

In addition,  this  brief  proposes  a  reform  of  Target2  under  which  overspending economies would have to pay the financial cost of accessing extra euros, which would deter the accumulation of internal imbalances within the euro area. All this is expected to change the current fragility of the architecture of the euro, provide member states with the right incentives to abide by sounder economic principles and make them fully responsible for the policies they adopt.

Download the publication

See the publication in a flipbook

Rebalancing the Euro Area: A proposal for Future Reform

Policy Briefs

Juan E. Castañeda

  • EU Member States
  • Eurozone
  • Macroeconomics

Related publications

  • Up, Up and Away? A Price Stability Guide for Policymakers

    IN FOCUS

    Up, Up and Away? A Price Stability Guide for Policymakers

  • Re-new EU — Recovery, Reopening and Revival

    Collaborative

    Re-new EU — Recovery, Reopening and Revival

  • The EU and the Multifaceted Nature of European Identity

    Research Papers

    The EU and the Multifaceted Nature of European Identity

  • EU Subsidiarity as an Antidote to Centralisation and Inefficiency

    Future of Europe

    EU Subsidiarity as an Antidote to Centralisation and Inefficiency

  • The Long View: A Centre Right Response to the Economic Fallout of War in Ukraine

    Ukraine

    The Long View: A Centre Right Response to the Economic Fallout of War in Ukraine

  • GDP, not the Bond Yield, should Remain the Anchor of the EU Fiscal Framework

    IN FOCUS

    GDP, not the Bond Yield, should Remain the Anchor of the EU Fiscal Framework

  • Standing in Unity, Respecting Diversity: A Survey Into Citizens’ Perspectives on the Future of Europe

    Future of Europe

    Standing in Unity, Respecting Diversity: A Survey Into Citizens’ Perspectives on the Future of Europe

  • Activity Report

    Activity Report 2021

You might also be interested by

  • E-Health and Data Science in Medicine with Johnson and Johnson’s Xiaoying Wu and Angel Martin

    Brussels Bytes - Multimedia

    11 Jan 2023

  • Interview with EP Secretary General Klaus Welle at EIF22

    Live-streams - Multimedia

    06 Jan 2023

  • Bridge the Channel – December 2022

    Bridge the Channel - Multimedia

    20 Dec 2022

  • Women in Foreign Policy

    Her and EU - Multimedia

    15 Dec 2022

  • Defence Dialogue Episode 19 – EU-UK Defence Cooperation

    Defence Dialogues - Multimedia

    13 Dec 2022

  • Brussels Bytes

    The Digital Markets Act with Andreas Schwab, MEP

    Brussels Bytes - Multimedia

    08 Dec 2022

  • Tapping Europe’s Offshore Energy Potential: A Way to Enhance Security of Supply

    Blog

    08 Dec 2022

  • Easy Money has Warped the Economics of Power

    Blog

    28 Sep 2022

  • Migration Update June 2022

    Migration Update

    30 Jun 2022

  • A New Era for French Politics

    Blog

    21 Jun 2022

Related events

    • 15 November 2022

      Net@Work 2022

      Net@Work 2022 2023-02-09

      Double Tree by Hilton, Rue Gineste 3, 1210 Brussels

      Common Projects

    • 26 October 2022

      Ukrainian immigration and its effects on the EU labour market

      Ukrainian immigration and its effects on the EU labour market 2023-02-09

      Townhall Europe, Sq. de Meeûs 5, 1000 Brussels

      In-House Events

Stay updated on Martens Centre Activities, Events and Publications

  • Navigate

    • Home
    • About
      • Who we are
      • Team
      • Bodies and Experts
      • Members
    • Publications
    • Events
    • News
    • Blog
    • Contact
  • More

    • A word from Wilfried Martens
    • European People’s Party
    • Join the team
    • Privacy Policy, Cookie policy & Legal
  • Contact us

    0032 (0)2 300 80 04
    20 Rue du Commerce
    1000 Brussels, Belgium

Copyright © 2023 | Martens Centre ALYS

This website uses cookies to improve your experience, click here for more info. ACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
SAVE & ACCEPT
Go to mobile version