Marcel Fratzscher, president of DIW Berlin in FT: The creation of a proper fiscal union is the most urgent reform

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The creation of a proper fiscal union is the most urgent reform and a rare opportunity for Europe to get Germany back on board


Marcel Fratzscher, president of DIW Berlin, a think-tank, FT 27 July 2015


A fiscal union should include a eurozone finance minister — an idea long favoured by Wolfgang Schäuble, Germany’s finance minister. Such a person would be accountable to a strengthened European Parliament with a new chamber for euro area issues. 


He or she could have the right to intervene in national budgets if these violate European law, such as the fiscal compact, and have a budget financed through a European tax as an add-on to either the value added tax or the corporate tax of euro area member states. 


The minister could have the ability to issue some jointly guaranteed debt within narrow limits. This ability to tax and borrow could be limited to two purposes: to provide unemployment insurance and to support investment.


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Deutsches Institut für Wirtschaftsforschung


Das DIW Berlin - Deutsches Institut für Wirtschaftsforschung ist eines der größten Wirtschaftsforschungsinstitute in Deutschland.  

Als Mitglied der Leibniz-Gemeinschaft wird das DIW Berlin überwiegend aus öffentlichen Mitteln finanziert.

DIW Berlin



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