To make the European Monetary Union work, a stabilization mechanism is needed. The solution Joerg Miroslav Beblavý & Vladimír Bilčík are proposing is a European Unemployment Scheme: a common Fund that re-insures countries that face economic shock or recession.
In order to make the European Monetary Union work, a stabilization mechanism is needed. The solution Joerg Bibow has been proposing for years is to create a “Euro Treasury”: a minimalist fiscal union run by the Eurozone member states aimed at funding public investment spending by issuing common debt securities. In his latest working paper he discusses in detail how to design it.
