Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/303449 
Year of Publication: 
2021
Series/Report no.: 
LEQS Paper No. 166
Publisher: 
London School of Economics and Political Science (LSE), European Institute, London
Abstract: 
The unprecedented fiscal package adopted by the European Council in the summer of 2020 ―dubbed Next Generation EU―is vital for the recovery of the euro area from the pandemic shock. However, there are risks that targets will not be met and that it may prove difficult to muster the same degree of European 'solidarity' in the future. Computations with a stylised macroeconomic model indicate that an alternative approach, with ex ante risk sharing through the creation of a Eurobond and permanent fiscal capacity at the centre, would be at least as powerful, yet it would be more sustainable, automatic and timely.
Subjects: 
Fiscal Policy
Business fluctuations
Safe sovereign assests
Fiscal capacity
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.