The transfer of sovereignty in monetary policy and exchange rate associated with the creation of the Economic and Monetary Union (EMU) provides fiscal and budgetary policy with a more important role as a stabilization policy, and even more taking into account the current financial and economic...

This paper deals with the role of fiscal policy in the Euro area economic policy framework. The centralisation of monetary policy, applied according to euro zone values, generates a loss of stabilisation capacity, since cyclic conditions can be different in each economy. A more active fiscal...