New EU/Eurozone budgetary lines
Proposals for new EU/Eurozone budgetary lines. As part of a broader range
of proposals on the EU’s agenda to reform and further integrate the
European Monetary Union, these include ideas to create additional budget
lines for a propped up program for reform support, an investment protection
function to deal with asymmetric shocks and/or a euro area convergence
facility .
Many of these ideas will be
highly controversial in the upcoming debates. Particularly Northern
European member states are concerned regarding the risks of hidden
transfers and moral hazard of such instruments while they doubt their
positive contribution to fiscal and economic stability. Non-Eurozone
members are concerned that funds will be shifted to the euro area needs.
EU Forecast
euf:ba18h:160/nws-01