Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Fiscal Union and the Eurozone Debt Problem


Author Info

  • Ionela Baltatescu


The present paper summarizes the main characteristics of the Eurozone institutional setup and the related economic and political incentives that drive Eurozone governments to increase their public debts, disregarding the limits agreed in the European treatises. The first part of the paper contains a review of the Eurozone institutional setup and of the incentives it creates for Eurozone member states to increase their deficits and public debts. The second part of the paper carries out a short review and criticism of the main strategies and policy tools to fight Eurozone debt problem: ECB bond buying, EFSF/ESM leverage, Eurobonds and Euro-TARP. The main conclusion of the paper is that establishing a fiscal union in EU does not solve by itself the public debt problem of Eurozone member states if the institutional mechanism of debt accumulation, debt rollover and risk socialization are not dismantled.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Article provided by Institute for World Economy, Romanian Academy in its journal Revista de Economie Mondiala.

Volume (Year): 4 (2012)
Issue (Month): 3 (September)

as in new window
Handle: RePEc:iem:journl:v:4:y:2012:i:3:id:2822000008747099

Contact details of provider:
Postal: Casa Academiei, Calea 13 Septembrie nr.13, sector 5, Bucure┼čti 761172
Phone: 004 021 4105596
Fax: 004 021 4105020
Web page:
More information through EDIRC

Related research

Keywords: public debt; fiscal union; Eurobonds; ECB bond buying; Euro-TARP;

Find related papers by JEL classification:


No references listed on IDEAS
You can help add them by filling out this form.



This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:iem:journl:v:4:y:2012:i:3:id:2822000008747099. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ionela Baltatescu).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.