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And recall that even with a common fiscal policy, Congress took until March 2009 to enact big fiscal stimulus, too late to curtail the U.S. recession that ended just three months later.
Oh yeahyoutube.com/watch?v=0B3zNc… September 12 , 2012Updated at 6.11pm BST 5.27pm BST Project Europe Moves Along Today's German court ruling means Project Europe – the push for a European federation with common fiscal, economic, and budget policies – has moved another step closer, says Europe editor Ian Traynor this evening.
The EU must democratise its economic governance, integrate more – including politically – and establish common fiscal rules.
"Eventually, you come to the point where a common euro area requires a common fiscal policy".
The bloc has neither a common fiscal policy nor a consensus on how best to balance stability and growth.
Despite what is often said, no economic law dictates that a common currency must have a common fiscal policy.
A tension seems certain to persist between a common currency and the absence of common fiscal and other policies to support it.
In the announcement of the taxpayers funds to support banks in difficulties, we have the beginnings of a common fiscal regime.
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Administration officials said they plan to borrow only to cover capital expenses -- the building of long-lasting physical assets like buildings and roads -- a common fiscal practice.
And the euro's very survival came into question, with pessimists contending that a common currency could not long endure without the coordinating structure of a common fiscal authority.
He notes that a rejection of Brexit now does not necessarily preclude adopting it at some point in the future, if – for example – the European Union adopts a common fiscal policy.
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