Author(s): Jeroen Dijsselbloem
Date published: Jun 2018
SUERF Policy Note, Issue No 37
By Jeroen Dijsselbloem, former Chairman, Eurogroup
The Economic and Monetary Union (EMU) is a community of values, formed by countries which have joined their economic faith. It implies rights and obligations, but also solidarity and responsibility. The key of the debate is how far this solidarity and responsibility goes. Can ‘Brussels’, as center of EMU, intervene in all domains? What should member states do themselves? We may not forget that the joint fiscal strength of the member states is 50 times higher than the size of the budget of the EU. Most macro-economic tools are also still in the hands of national governments: income tax, pensions, housing, labour market, social security, health care. So, member states still are key players in financial and macro-economic policy. Of course, there are basic rules for the member states such as the 3% budget deficit limit with engagement to move towards equilibrium, the 60% public debt rule and the prospect to go beyond towards a lower level.
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