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Instead, the EU must reshape itself into two concentric circles: an inner core committed to deeper integration, and an outer ring whose voters have no interest in a single currency and a shared fiscal space.
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"And it is first and foremost important to get a commonly shared fiscal compact right.
Indeed, if anything, spending rises, providing some support for the alternative view of fiscal illusion or shared fiscal irresponsibility.
Second, although we find evidence for the alternative view of fiscal illusion or shared fiscal irresponsibility, it is only modest.
After that, the estimated cumulative effect is positive at every horizon except quarters 9 and 10, suggesting fiscal illusion or shared fiscal irresponsibility.
Germany has fiscal space, Draghi replies smoothly.
Countries who have fiscal space should use it.
The answer depends on the amount of "fiscal space" a government enjoys.
"Governments had enough monetary and fiscal space to boost liquidity and pump-prime their economies.
The Fund argued that the less stringent target would provide fiscal space and boost economic growth.
Frankel, Jeffrey A. "US will Lack Fiscal Space to Respond when Next Recession Comes". The Guardian, August 28 , 2018
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