Philippe Martin, Lucrezia Reichlin, 01 March 2022

What are the economic imperatives and legal hurdles for reform? A new CEPR Policy Insight identifies the fault lines in the EU framework and suggests what can be done economically and legally to repair them.

Read more about this research and download the Policy Insight:
M. Maduro, P. Martin, JC Piris, J. Pisani-Ferry, L. Reichlin, A. Steinbach, B. Weder di Mauro, Revisiting the EU framework: Economic necessities and legal options, CEPR Policy Insight No 114.

Miguel Poiares Maduro, Philippe Martin, Jean-Claude Piris, Jean Pisani-Ferry, Lucrezia Reichlin, Armin Steinbach, Beatrice Weder di Mauro, 16 December 2021

The stability and adequacy of the European monetary and fiscal frameworks are increasingly challenged by enduring changes in the economic environment. This column summarises the findings of a group of economists and lawyers specialised in EU matters who undertook a comprehensive assessment of the economic requirements and legal conditions of a well-functioning macroeconomic policy system for the EU and the euro area. They propose reforms of economic framework in line with economic necessities along three dimensions (coordination of fiscal and monetary policies, fiscal rules, and fiscal capacity at EU level) and assess their legal feasibility. They conclude that meaningful reforms that would bring legal clarity and improve economic performance are feasible within the confines of existing primary law.

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