The False Promise of a Eurozone Budget

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Daniel Gros
07 December 2012
2

In this new CEPS commentary, CEPS Director Daniel Gros takes a closer look at the US experience to point out that the federal budget provides much less insurance against state-specific shocks than widely assumed, while the US banking union act as a very powerful shock absorber. Accordingly, he argues that the euro’s long-term stability depends far more on completing plans for a European banking union than on the introduction of a fiscal capacity for the eurozone.