Front Matter

Front Matter

Carlo Cottarelli, and Martine Guerguil
Published Date:
December 2014
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    Does the European Union need closer fiscal integration, and in particular a stronger fiscal centre, to become more resilient to economic shocks? This book examines the experience of 13 federal states to help inform the heated debate on this issue. It analyses in detail their practices in devolving responsibilities from the subnational to the central level, compares them to those of the European Union, and draws lessons for a possible future fiscal union in Europe.

    More specifically, this book tries to answer three sets of questions: What is the role of centralized fiscal policies in federations, and hence the size, features, and functions of the central budget? What institutional arrangements are used to coordinate fiscal policy between the federal and subnational levels? What are the links between federal and subnational debt, and how have subnational financing crises been handled, when they occurred? These policy questions are critical in many federations and central to the current discussions about future paths for the European Union.

    This book brings to the table new, practical insights through a systematic and comprehensive comparison of the EU fiscal framework with that of federal states. It also departs from the decentralization perspective that has been prominent in the literature by focusing on the role of the centre (which responsibilities are centralized at the federal level and how they are handled, rather than which functions belong to the local level). Such an approach is particularly relevant for the European Union, where a fiscal union would imply granting new powers to the centre.

    Carlo Cottarelli is a Special Commissioner for Public Spending in Italy. Previously, he was Director of the Fiscal Affairs Department of the International Monetary Fund (IMF).

    Martine Guerguil is a Deputy Director of the Fiscal Affairs Department of the IMF, where she oversees the preparation of the IMF flagship Fiscal Monitor.

    Routledge Studies in the European Economy

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      Edited by Amedeo Fossati and Giorgio Panella

    • 10 European Telecommunications Liberalisation

      Edited by Kjell A. Eliassen and Marit Sjøvaag

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      The economic geography of interaction

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    • 12 SMEs and European Integration

      Internationalisation strategies

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    • 13 Fiscal Federalism and European Economic Integration

      Edited by Mark Baimbridge and Philip Whyman

    • 14 Financial Markets in Central and Eastern Europe

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    • 15 Russian Path Dependence

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    • 16 The Impact of European Integration on Regional Structural Change and Cohesio

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    • 17 Macroeconomic Policy in the European Monetary Union

      From the old to the new stability and growth pact

      Edited by Francesco Farina and Roberto Tamborini

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      EU-Africa relations in transition

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    • 23 Economic Governance in the EU

      Willem Molle

    • 24 Financial Integration in the European Union

      Edited by Roman Matoušek and Daniel Stavárek

    • 25 Europe and the Mediterranean Economy

      Edited by Joan Costa-Font

    • 26 The Political Economy of the European Social Model

      Philip S. Whyman, Mark J. Baimbridge and Andrew Mullen

    • 27 Gender and the European Labour Market

      Edited by Francesca Bettio, Janneke Plantenga and Mark Smith

    • 28 The Economic Crisis and Governance in the European Union

      A critical assessment

      Edited by Javier Bilbao-Ubillos

    • 29 Competitiveness in the European Economy

      Edited by Stefan Collignon and Piero Esposito

    • 30 The Contradictions of Austerity

      The socio-economic costs of the neoliberal Baltic model

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    • 31 The New Economic Governance in the Euro area

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    • 32 The Economics of Urban Property Markets

      An institutional economics analysis

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    • 33 South-East Europe in Evolution

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    • 34 Designing a European Fiscal Union

      Lessons from the experience of fiscal federations

      Edited by Carlo Cottarelli and Martine Guerguil

    Designing a European Fiscal Union

    Lessons from the experience of fiscal federations

    Edited by Carlo Cottarelli and Martine Guerguil

    First published 2015

    by Routledge

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    © 2015 International Monetary Fund

    Nothing contained in this book should be reported as representing the views of the IMF, its Executive Board, member governments, or any other entity mentioned herein. The views expressed in this book belong solely to the authors.

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    British Library Cataloguing in Publication Data

    A catalogue record for this book is available from the British Library

    Library of Congress Cataloging-in-Publication Data

    Designing a European fiscal union : lessons from the experience of fiscal federations / edited by Carlo Cottarelli, Martine Guerguil.

    pages cm — (Routledge studies in the european economy)

    1. Fiscal policy—European Union countries. 2. European Union countries—Economic policy. I. Cottarelli, Carlo. II. Guerguil, Martine.

    HJ1000.D47 2014



    ISBN: 978-1-138-78322-5 (hbk)

    ISBN: 978-1-315-76879-3 (ebk)

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