European policy makers, notably in the euro area, seem to take for granted that the electorate will punish them for bold reform in product and labour markets. This may explain why progress in the euro area has been comparatively limited. This paper posits and, using a dataset for 21 OECD...

EMU's unique economic governance structure was set up by the Maastricht Treaty to ensure the proper functioning of the economic and monetary union. A single monetary policy is entrusted with an independent central bank, a range of common policies is decided by the Council (notably the ECOFIN...

Several criticisms of the current fiscal strategy in the EU have recently been forcefully expressed. In this brief, we examine these criticisms, and provide some clarifications and responses. We recall that large adjustments are needed in most economies to restore sustaina-ble fiscal positions,...