Abstract
Fiscal policy is one of the three pillars of what Dr. Ottmar Issing (2002) has called the Maastricht Assignment. For the Eurozone as a whole, the Central Bank is responsible for area-wide price stability. The twelve fiscal authorities are responsible for fiscal policy - country by country - subject to the provisions of the Stability and Growth Pact (SGP). The third pillar involves supply-side issues and wage/price developments and is the responsibility of national governments and the social partners. Issing has argued that this assignment provides a clear division of roles and responsibilities - and that no further macroeconomic coordination is necessary or desirable. In this article, Christopher Allsopp assesses the framework for fiscal policy in the Eurozone, arguing for a system that is more decentralised; ensures sustainability as a primary objective; and, subject to that, allows for activist stabilisation policy against country-specific shocks.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
