Eurozone Crisis Assignment

Added on - 21 Apr 2020

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Running head: EUROZONE CRISISEurozone crisisName of the universityName of the studentAuthors note
1EUROZONE CRISIS
2EUROZONE CRISISTable of ContentsIntroduction:....................................................................................................................................2Discussion:.......................................................................................................................................3Conclusion:......................................................................................................................................7References lists:...............................................................................................................................8
3EUROZONE CRISISIntroduction:Eurozone crisis is regarded as an unwelcome reminder that fiscal discipline requirementcannot be ignored by any country. It make clarification on issues associated with fiscal rules andthe ways of achieving such discipline. As far as fiscal policy is concerned in euro areas, itcombines the elements of common currency and federalism. The national fiscal policies isinfluenced by designing of stability and growth impact. Separation between independent fiscalpolicies and common currency have been erased by sovereign debt crisis. Debt limit and deficitof stability and growth pact are considered as insufficient to deliver fiscal discipline due to hardlegislation endorsed by political system as depicted by numerical rules (Ahmadet al.2013).Discussion:Today, fiscal governance in European Union is regarded as set of common rules at supernational level and decisions concerning fiscal policy at national level taken by member states inthe legal framework of EU. Member states of European Union have been pushed to adoptintrusive and extensive fiscal rules. Stability and growth pact has been facing consistentparadigm and the integrity and effectiveness of fiscal rules has been at risks due to shortcomingsof enforcement and implementation that are politically driven. The thrust of reforms of manyeconomic governance in response to the eruption of economic crisis that erupted after therevealing of dire state of finances of Greek public (Allegretet al. 2016). It is suggested byempirical evidence that European Union has continued to play a powerful role in economicgovernance of European Union. For the maintenance of fiscal sustainability, domestic fiscal ruleshave to be introduced by European countries as a part of reform that is consistent with mediumterm objective. EU leaders have been forced to contend with the weakness of future viability of
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