The European Stability Mechanism (ESM) proposes raising the ceiling on public debt set by EU fiscal discipline rules from 60 to 100 per cent of GDP, and combining it with a rule limiting public spending to ensure fiscal sustainability, as reported by EFE. In a paper published in advance of the review of these rules, economists at the eurozone bailout fund argue that, in the current context, insisting on the…
EU fiscal policy
BoAML | The ECB has closed many doors in December. The 2015-16 strategy of monetary policy covering for fiscal loosening to facilitate structural reform has changed.We are back to national governments having to navigate through strained fiscal trajectories, leaving very little room for mistakes. Potential growth prospects are not great, not only in the periphery.
The European Union (EU) is a group of sovereign states, who are sovereign in that they are entirely free to leave the EU. This freedom to leave means the EU is not a “super state.” There is no coercive force — and no EU army — to make Britain or any other country remain in the union. Britain enjoys a freedom, within the EU, that colonies did not enjoy within the British or other European empires. Britain is, therefore, entirely within its rights in considering the option of leaving the EU, although that does not mean such a course would be wise.