From the perspective of optimal currency areas, a monetary union such as the euro area which is characterized by low labor mobility needs fiscal institutions which may have stabilizing effects in the case of…
Many observers argue that the European monetary union will not survive unless it is complemented by a ‘fiscal union’. In this context, the introduction of a fiscal capacity at the euro area level as proposed by…
The financial and economic crisis had a severe impact on public finances in Europe. The immediate short-term fiscal policy responses served to cushion some of the adverse effects of the crisis. But the initial…
The two German federal states of Bavaria and Hesse recently filed a lawsuit in the German supreme court against the current German vertical equalization scheme, which regulates the financial relationship of the…
Female labour force participation and fertility rates have been very low in Germany, particularly among women with a university degree. Long career breaks and their high opportunity costs may explain both facts.…