Sovereign debt crisis in Monetary Unions: prevention, prevention and prevention
This paper draws on recent events in the euro area to discuss the serious gaps in the fiscal architecture of the European Economic and Monetary Union. These gaps stem from the lack of a fiscal federation and the incapacity of EU institutions to effectively enforce the set of rules supposed to make up for the absence of a fiscal principal. The failure of preventive instruments made the absence of crisis management and resolution capabilities in the euro area highly problematic, exposing the union to a meaningful risk of breakup. To conclude, we draw the lessons of the euro sovereign debt crisis in terms of improving the euro area’s fiscal architecture and, more broadly the fiscal framework required for the sustainability of other monetary unions without fiscal unions. JEL codes: E61, E62, F55
Volume (Year): XLIX (2010)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.cairn.info/revue-reflets-et-perspectives-de-la-vie-economique.htm|
When requesting a correction, please mention this item's handle: RePEc:cai:rpvedb:rpve_494_0059. 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: (Jean-Baptiste de Vathaire)
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.