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Isabel Rodríguez Tejedo, Professor of Economics , University of Navarra, Spain

An injection of confidence

Sun, 04 Dec 2011 17:05:58 +0000 Published in

It all depends on the form the supposed "fiscal union" takes. If it is well thought out, it could increase confidence in the system, which would alleviate pressures. Even so, it will not solve the problems of national origin. If it is half-baked, the effect could be nil in the medium and long term deadline. Even if the union translates into controls to prevent excessive deficits and monitor national budgets, the details will be important. If the control mechanisms are weak, we will see a repetition of the failure of the Stability Pact. If the French way, in which countries can veto budgetary control decisions coming from Europe, materializes, it is likely to end up as a dead letter.