Jacques Delors Institute Berlin; Bertelsmann Stiftung (ed.)

Ole Funke, Lucas Guttenberg, Johannes Hemker, Sander Tordoir

Finding Common Ground

A pragmatic budgetary instrument for the Euro Area

  • 2019, 14 pp (PDF)
  • Free of charge

By June, the Eurogroup has to come up with a concrete design for budgetary instrument for the euro area - but so far it is absolutely unclear what it should look like. Our policy paper fills this void and makes a concrete and pragmatic proposal that would make the Eurozone function better: The instrument would be geared towards improving business cycle convergence and producitivity. The instrument's expenditure would go to supporting investment and reforms and to temporarily help countries co-finance EU projects. It would be funded by cyclically-sensitive contributions by Member States akin to a synthetic European corporate tax.