László Andor, Paolo Pasimeni, 13 December 2016

Since its inception, the Eurozone has had lower growth and higher unemployment rates than other regions, which suggests the need for new fiscal instruments. This column argues for a stabilisation instrument based on unemployment as the driving indicator. This unemployment benefit scheme coud take the form of a basic common European scheme, or a reinsurance fund supporting national systems. In either case, the instrument wouldn’t be a panacea, and the key obstacle to implementation would be political.