Institutional challenges and alternatives: Revision of fiscal rules in the EU
Mogens Ove Madsen
Please cite the paper as:
Mogens Ove Madsen, (2018), Institutional challenges and alternatives: Revision of fiscal rules in the EU, World Economics Association (WEA) Conferences, No. 2 2018, The 2008 Economic Crisis Ten Years On, 15th October to 30th November, 2018
This paper has been included in the publication
“The 2008 Crisis Ten Years On: in Retrospect, Context and Prospect Paperback”
Fiscal policy in the EU crisis management has been given an overly restrictive role. Even the fact that the ECB has, at its own discretion, launched a QE policy – to notice after the fiscal tightening – has not had the expected impact on investment activity or inflation rate in Europe. Similarly, public investment has not been used sufficiently as an anti-cyclic instrument. Financial policy must be given a greater role in EU cooperation.