Rebalancing the Euro Area: A proposal for Future Reform
This report proposes a new institutional arrangement for the euro area to restore fiscal discipline and suggests reforms to the Target2 payment system.
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| Quick Facts | |
|---|---|
| Report location: | source |
| Language: | English |
| Publisher: | Wilfried Martens Centre for European Studies |
| Authors: | Juan E. Castañeda |
| Geographic focus: | Euro Area |
| Page count: | 20 pages |
Methods
The research method involves analyzing the current fiscal and monetary policies within the euro area, assessing the challenges and imbalances, and proposing a new institutional framework. It includes a review of historical monetary unions, current debt levels, and the operation of the Target2 system.
(Generated with the help of GPT-4)
Key Insights
The report outlines a framework for the euro area that emphasizes fiscal sovereignty and mutual responsibility among member states. It proposes a partial mutualization of debt and reforms to the Target2 system to prevent imbalances and enhance the stability of the euro. The approach aims to reduce fiscal and macroeconomic imbalances, making the euro a stronger currency while minimizing the need for further regulations.
(Generated with the help of GPT-4)
Additional Viewpoints
Categories: English publication language | Euro Area geographic scope | central bank independence | debt mutualisation | economic and monetary union | economy | euro | euro-area asymmetries | financial contagion. | fiscal and structural policy | fiscal discipline | fiscal sovereignty | fiscal union | governance | macroeconomic stability | market-based adjustments | monetary policy | monetary union | politics | target2 reform