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
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.